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House Democrats reach deal on Medicare

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Published: October 22, 2009

WASHINGTON - House Democrats say they've reached a Medicare deal that secures critical support from heartland and Pacific lawmakers for health overhaul legislation.

The deal announced today also holds the promise of changing Medicare payments to reward quality care instead of the sheer volume of tests and procedures.

Medicare recipients in some states get quality care at lower cost than in most other places. But hospitals and doctors in those states make less money per patient than providers in higher-cost areas. The deal reached with House Speaker Nancy Pelosi would address the disparity without busting the budget.

It calls for two expert studies on changing how Medicare pays hospitals and doctors. Recommendations would be carried out unless Congress objects.

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