Medicare Physician Payment--3/19/10 Update

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Medicare Physician Payment--3/19/10 Update

With the April 1, 2010 deadline looming, some Members of Congress has been trying to prevent the scheduled 21.2 percent Medicare physician payment cut. However, it is unclear if Congress will be able to act before the deadline since it is focused on passing the health care reform legislation before the congressional spring recess.

Future Uncertain for Medicare Physician Payment Cuts

Last month, Congress passed a one month patch at the last hour to avoid the scheduled 21.2 percent Medicare physician payment cut. This patch is scheduled to expire on March 31, 2010. If Congress does not act again, physicians are facing this substanial cut in their Medicare reimbursement. Both the House and Senate have been employing different strategies to avoid the cuts by the April 1 deadline.

On March 10, the U.S. Senate passed the “American Workers, State, and Business Relief Act of 2010” (H.R. 4213) by a vote of 62-36, which includes a provision delaying the 21.2 percent cuts until October 1. The U.S. House of Representatives passed a similar version of this bill on December 9, 2009, but the House version does not include any health-related provisions.

Because the House language differs from the Senate version, the House and Senate need to reconcile the language before it can be signed into law. It is not clear if they will be able to do so and sign this extension into law before the current Medicare physician payment freeze expires April 1, given the priority focus on health care reform legislation.

On Tuesday, March 16, Rep. Sander Levin (D-MI), Chairman of the House Ways and Means Committee, introduced legislation (H.R 4851) providing a one-month patch delaying the Medicare physician payment cuts until May 1. The House passed this one-month extension the next day. It is not yet known when, or if, the Senate will vote on H.R 4851. Both the House and Senate are scheduled to recess within the next two weeks.