The head official at the Congressional Budget Office (CBO) delivered some sobering news to lawmakers on Friday: the House's health reform bill will add $239 billion to the federal deficit over the next 10 years. That means the bill violates one of President Barack Obama's main principles (that it reduce costs for government) for reform, The Wall Street Journal notes.

The Medicare Payment Advisory Commission (MedPAC) released its June 2009 Data Book this morning. It's no surprise that you'll find the volume of outpatient services per patient up (19% from 2002-2007) along with the number of patients enrolled in a Medicare Advantage plans (increasing to 10.5 million in 2009 from 9.4 million in 2008).

Initially, what's caught my eye is MedPAC devoting a section to observation services.

We've updated the Part B News Library with two key tools for your practice, and are only available to Part B News subscribers. The first is an Observation Audit Sheet, the newsletter's tool of the month developed by DecisionHealth Professional Services. This form will help you accurately and consistently audit billed observation services. The sheet should be used with chart notes to determine the appropriate level of service billed - cutting down on overbilling and ensuring compliance.

I was trolling through CMS's FAQ Web page and found these four situations where Medicare's Advanced Beneficiary Notice (ABN) should or should not be used when transporting a patient.  Two of these situations show an ABN is applicable, according to CMS. However, an ABN cannot be used if it's an emergency transport because the patient is under durress.

The House of Representatives' version of a major health reform bill is out. You may read the bill by clicking here. Reports indicate the proposal has a $1 trillion price tag over the next 10 years. In a quick glance, we've found several mentions of Medicare and Medicare Advantage throughout the document. We'll provide more analysis in a future issue of Part B News and on www.partbnews.com.