North Dakota hospitals retained Medicare reimbursement rates after congressional action.

The reauthorization of the Medicare Modernization Act extended a provision that leveled the reimbursement rate across the state for all hospitals. Without this provision, some hospitals in the state would have seen a decrease in reimbursement rates. President Bush has signed the bill.

"Our North Dakota hospitals and doctors were facing deep cuts, jeopardizing seniors' access to important Medicare services," said Rep. Earl Pomeroy D-N.D., a member of the Ways and Means Health Subcommittee, which has jurisdiction over Medicare. "I am pleased that Congress has reached a deal that not only averts these cuts but also preserves the rural health care safety net we fought so hard for in the Medicare Modernization Act."

Rates for hospitals are based in part on wages. The wages are compared to a national average, then adjusted for cost of living. The legislation uses the adjusted rate for Fargo's hospitals, which is a higher rate than what the other hospitals in the state would have received without the legislation. Without the legislation, the hospitals would have lost about $11 million a year in reimbursement.

"The passage of this bill is a big victory for North Dakota's hospitals and health care providers across our state. It extends vital programs that deliver quality care to our children, seniors and families, especially those in rural areas," said Sen. Kent Conrad D-N.D., a senior member of the Senate Finance Committee, which oversees Medicare.

The provision is retroactive to October 2007 and continues through September 2008.

Pomeroy, Conrad and Sen. Byron Dorgan, D- N.D., supported the passage of the legislation.

The legislation also provides a bonus payment for physicians in rural areas and cost-based reimbursement for labs at critical access hospitals. Also, reimbursement for long term acute care hospitals will increase. This affects a facility in Fargo and one in Mandan. The facilities could have lost $1 million a year in funding without this provision.

The bill also extends a provision for the special diabetes program until Sept. 30, 2009, will allow Indian Health Service and tribal groups to provide programs to prevent and treat diabetes. The bill also reauthorizes the existing State Children's Health Insurance Program, a program that provides health coverage for low-income, uninsured children. The program serves 6,300 North Dakota children without health insurance.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)