Senator Max Baucus’ (D-MT) legislation — S. 3101, “The Medicare Improvements for Patients and Providers Act of 2008”), which was introduced last week to halt the 10.6% Physician Medicare Payment Cut — failed to garner enough votes to move forward. On Wednesday June 11, 2008, Finance Committee Ranking Member Charles Grassley (R-IA) introduced his version of a bill which contains similar provisions addressing physician issues, S. 3118, “The Preserving Access to Medicare Act of 2008”.

The Grassley bill differs on the physician provisions in the following ways:

• The E-prescribing mandate for qualifying physicians becomes punitive a year earlier, 2011, than the Sen. Baucus version. It does not require a GAO report on
  e-prescribing
• Provides $45 million in funding for the expansion of the Electronic Health Records Demonstration Project to up to 40 sites
• Provides $40 million of funding, not $10 million, for the Secretary to contract with a consensus-based entity (NQF) to prioritize, endorse, and maintain valid quality performance measures in all applicable settings
• Establishes a Medicare Coordinated Care Practice Research Network Demonstration, whereas the Sen. Baucus’ bill only asks MedPAC to conduct a study on the merits of establishing such a Research Network to test new models of care coordination. The demonstration project would engage no less than eight organizations which are direct providers of coordinated care to Medicare beneficiaries with multiple chronic conditions.

Because the Democrats were unable to push Sen. Baucus’ bill, they will have to negotiate a compromise with Republicans and also find off-sets that do not elicit Presidential veto threats, such as the proposed cuts to Medicare Advantage plans.

Please continue to communicate to your legislators to stop the cut by July 1, 2008. Write or call using the Alliance of Specialty Medicine's toll-free Grassroots Hotline at 1 (866) 899-4088. When asked for your 4-digit specialty code, enter 6969.