U.S. senators start writing healthcare overhaul

By Donna Smith

WASHINGTON (Reuters) - U.S. Senators leading the effort to revamp the U.S. healthcare system said on Wednesday they had begun fleshing out proposals aimed at improving the quality of care, but are leaving until later tough decisions on how to cover the uninsured and pay for it.

"Today we kicked off the process of writing a comprehensive health reform bill," Senate Finance Committee Chairman Max Baucus said following a closed door meeting of panel members. The session focused on proposals aimed at changing the payment system for the Medicare program for the elderly.

Baucus, a Democrat, and Senator Charles Grassley, the top Republican on the panel, are pushing to draft far-reaching health reform legislation by June to try to get a final bill to President Barack Obama by the end of the year.

At Wednesday's session, lawmakers looked at changing the payment structure of Medicare to reward quality rather than base payments on the number of services and procedures performed by doctors and hospitals. Baucus and Grassley said lawmakers were in broad agreement about that goal, but had a number of questions about implementation and regional impact.

The panel is focusing on the Medicare payment structure because changes in the government program can influence private healthcare providers.

Panel members are considering giving bonus payments to doctors and hospitals that deliver better care and keep their patients out of hospitals. They are also looking at better compensation for primary care doctors who oversee patient care and walk them through any treatments or procedures.

Other proposals would reward health care providers who adopt electronic health records.

Overhauling the $2.5 trillion U.S. healthcare industry to rein-in soaring costs and cover an estimated 46 million uninsured Americans is a top priority for Obama. And Democrats who control Congress have promised a bipartisan bill.