Senate Failure to Pass Extension Causes 21.3% cut to Medicare Physician Payments on April 1

The Senate has adjourned for its two-week “Spring District Work Recess” without approving H.R. 4851, a short-term measure that would have extended the freeze on Medicare’s current physician payment rates through April 30. Several Senate Republicans led by Tom Coburn of Oklahoma objected to classifying the bill, which also included extensions of unemployment benefits and COBRA insurance, as emergency spending. The House of Representatives passed the bill on March 17. By law, the 21.3 percent cut to Medicare physician payments will take effect April 1.

The Senate returns April 12 and has scheduled a cloture vote on the 30-day extension bill for 5:30 p.m. that evening. Physicians should contact their Senators and urge them to permanently address this issue by repealing the sustainable growth rate formula. You can contact your senators via the MGMA Advocacy Center or by calling the American Medical Association Grassroots Hotline, 800.833.6354.  Courtesy of MGMA

Senate Approves Delaying Physician Pay Cut Until October 1

The Senate voted on 03/10/2010 to delay a 21.2% physician pay cut in Medicare reimbursement until October 1. The bill that the Senate approved including a $138 billion package of legislation, including tax extenders and unemployment aid that the White House said is critically important to the country’s economic recovery.

The Baucus bill appears to be a compromise between senators who wanted to implement a one-year payment fix and others who were seeking another “short bridge” to give Congress more time to possibly repeal the formula that calls for annual physician payment cuts.