On February 10, 2004, Representative Pete Stark (D-CA) introduced a new bill entitled "The Long Term Care Hospital Moratorium Act." The bill would place a moratorium on the growth of Medicare Long Term Care Hospital ("LTCH") beds until information is available to determine whether continued growth is required to meet the needs of America's seniors and people with disabilities. LTCHs are one of four types of post-acute settings that are reimbursed under Medicare. In the past decade, the number of LTCHs has increased from 109 to 300, and expenditures directed to these facilities have grown from $398 million in 1993 to an anticipated $2.3 billion in 2005. Recent data from the non-partisan Medicare Payment Advisory Commission ("MedPAC") indicates there may be a substantial overlap between the types of patients being treated in LTCHs and skilled nursing facilities, yet LTCHs are 4 to 5 times more expensive under Medicare. According to Rep. Stark, "The 275 percent increase in the number of these primarily for-profit facilities over the past decade is dramatic. It's time Congress questioned whether this growth reflects a true increase in clinical need or just a means to game robust profits from Medicare without adding value to the care provided to our seniors and people with disabilities." The Secretary of Health and Human Services may terminate the proposed Moratorium after obtaining adequate information that addresses the various concerns.
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