Health Implications Of Pres Clinton's 1998 Budget

President Clinton's 1998 budget will not freeze health maintenanceorganization payments, US Health Care Financing Administration head Bruce Vladek has said. There will be no payment drop in any region but there will be a $350 floor for the monthly capitation rate, which would bring up the plans now getting lower payments.

He noted that there would be an attempt to eliminate the geographic inequities in the current system by blending local and national payment formulas. The percentage amount for coverage of the estimated average fee-for-service costs, now set at 95%, will drop to 90% in the year 2000.

Components of managed care payments that are supposed to go to medical schools, academic medical centers and hospitals getting disproportionate share payments for the poor and uninsured will no longer go to the managed care plans, but will be put into a special fund to support medical education and care for the poor.