February 26, 2010
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House passes bill to delay Medicare physician payment cut for 1 month

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The House of Representatives voted Thursday to approve a bill that extends unemployment benefits and delays a planned 21% cut in Medicare physician payments until late March.

In December, House members voted to approve a defense appropriations bill that delayed the cut until Feb. 28; the cut had been scheduled to take effect Jan. 1.

The Senate adjourned for the weekend Friday without voting on its own version of the unemployment benefit bill. Sen. Jim Bunning, R-Ky., blocked the legislation on the grounds that it would increase the federal budget deficit, according to a press release.

“While the cut will go into effect Monday, disruptions currently are not expected in processing Medicare physician claims, as [the Centers for Medicare and Medicaid Services] does not pay claims until at least 14 days after they are submitted,” the AAO release said. “CMS is expected to communicate with participants shortly, but members should expect to submit their claims as they have been (without figuring a 21% cut). CMS presumably will hold those claims for the short term in anticipation of congressional action next week to avert the cut.”

As introduced, the Temporary Extensions Act provides a 1-month adjustment to the sustainable growth rate (SGR), a key factor in the Medicare physician payment formula, according to a summary of the bill. The bill provides for a 0% update from Jan. 1 to March 28. After that time, adjustments will be discarded, resulting in a cut in physician payments of at least 21%.

The American Medical Association and other medical societies support changes to the SGR or its elimination.

In November, the House passed a bill that would permanently repeal and replace the SGR.