WASHINGTON – U.S. Senator Roger Wicker, R-Miss., is helping lead a bipartisan effort to reform the Hospital Readmissions Reduction Program (HRRP) so hospitals serving low-income populations are evaluated and reimbursed fairly. The measure is sponsored by U.S. Senators Joe Manchin, D-W.Va., and Rob Portman, R-Ohio.

“Current law targets many hospitals for high readmission rates because of inadequate data,” Wicker said. “Congress should level the playing field for these health-care providers, which often serve high-risk and vulnerable populations. This proposed reform is an important step toward better readmissions evaluations, ensuring that Americans continue to have access to quality health care in their communities.”

The aim of the program, which was created by Obamacare, was to reduce preventable readmissions by penalizing hospitals with higher-than-average Medicare readmissions rates. However, readmissions are greatly influenced by factors beyond the hospital’s control, and studies have shown that the challenges faced by urban and rural, low-income populations directly impact these outcomes.

The bill, “Establishing Beneficiary Equity in the Hospital Readmission Program Act,” would require the Centers for Medicare and Medicaid Services to account for patient socio-economic status when calculating the risk-adjusted readmissions penalties. This fix would overall improve quality of care, increase accountability for all inpatient hospitals, and further reduce preventable Medicare readmissions.

Other cosponsors of the bill include Sens. Bill Nelson, D-Fla., and Sherrod Brown, R-Ohio.

The measure has been endorsed by the American Hospital Association, America’s Essential Hospitals, and the Association of American Medical Colleges.

Background

HRRP reduces payments to hospitals with excess readmissions during the prior three years, and the program currently includes risk-adjustment for clinical factors such as comorbidities and severity of illness. In 2013, HRRP penalties were capped at 1 percent of a hospital’s inpatient base operating payments. The cap increases to 2 percent in 2014, and remains at 3 percent in 2015 and thereafter.