SGR Fix Stuck Because of Jobs Bill

There is one big  problem with the currently proposed SGR fix,  it is attached to a jobs bill.  On Friday, June 18th the Senate tried to unbundle it and  passed a bill that would have stopped the SGR cut for six months.  The Senate did not address the bigger jobs bill.  The Senate expressed concerns over the increasing decifit as the reason for not passing the jobs bill. 

On Monday, June 21st the House leadership would not take up the Senate bill (SGR six-month patch) without a jobs bills.  Within hours Nancy Pelosi released a statement saying, “I see no reason to pass this inadequate bill until we see jobs legislation coming out of the Senate.  House Democrats are saying to Republicans in the Senate: Show us the jobs!”

At this point the SGR legislation is languishing because of concerns about a jobs bill.  Meanwhile Medicare is processing claims that had been previously held with dates of service of 6/1/10 forward at the 21.3% reduced rate.  These claims are being processed on a first in / first out basis (FIFO).  The Senate and House are currently at a stalemate regarding jobs bill and SGR which unfortunately have been tied together. 

Senate to debate new 6-month Medicare physician payment provision

 Last night, Senate Democratic leaders introduced a substitute amendment to the American Jobs and Closing Tax Loopholes Act (H.R. 4213) that includes a provision calling for a 2.2 percent increase to Medicare physician payment for claims with dates of service of June 1 through Nov. 30, 2010.
The Senate was unable to bring the House-approved version of this legislation to the Senate floor for debate following a failed procedural vote yesterday. In late May, the House of Representatives passed legislation approving a 2.2 percent increase to Medicare physician payment rates for the remainder of 2010 and a 1 percent increase in 2011. In 2012, the payment levels would revert to current law, forcing physicians to confront an estimated 33 percent reduction.

The Senate may hold votes as early as today, however debate on this bill may continue late into the week before final votes are held. If the Senate approves the substitute amendment, the House of Representatives must still pass the underlying tax extenders bill before it becomes law. If the bill is signed into law, the pending Medicare physician payment cuts would then be scheduled to take effect on Dec. 1, 2010.