In the next few weeks Congress and the President will be forced to face the increasing Medicare costs, is only in the short term, as scheduled cuts to physican compensation went into effect on July 1. "How to pay doctors through the federal health insurance program is an issue that lawmakers are forced to confront every year because of what is widely agreed to be an outdated reimbursement formula. [...] Just before the Fourth of July recess, the House passed a bill to prevent the Medicare pay cut by a vote of 355 to 59. In the Senate, Republicans blocked efforts to take up the bill, so the cut took effect on July 1, as required by the formula. But the Bush administration has delayed processing of new claims to give Congress time to come up with a compromise," reports the New York Times. "[T]he Medicare issue has been a sticking point for years. The question is how to rein in the rapidly rising cost of the federal health program. Members of both parties say they want to change the formula, which defines a "sustainable growth rate" for spending on doctors. But Congress is nowhere near agreement. The pending bill offers a short-term fix. It would reverse the 10.6 percent cut and increase Medicare payments to doctors by 1.1 percent in January. Under the current formula, doctors would still face cuts of more than 5 percent a year from 2010 to 2012."

Reforming medicare and medicaid was one of the issues taken up at the Youth Entitlements Summit (YES) a few weeks ago in DC. AYA's president participated as one of the youth panelists at YES, which culminated in the bipartisan panel authoring a Declaration for addressing entitlement and budget issues. Share your thoughts and questions on Healthcare costs and the federal budget in our forums.