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Congress delays Medicare physician payment cut, extends 2.2% update for 1 year

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The US House of Representatives today passed a bill by a unanimous voice vote that forestalls for 1 year a 25% physician payment decrease scheduled to take effect Jan. 1. The Senate passed the bipartisan bill Dec. 8.

The measure also uses provisions in President Barack Obama's health care reform law to extend the current 2.2% Medicare physician payment update for 1 year.

The $19 billion 1-year fix would be funded by raising limits on overpayment of consumer tax credits. Under the Patient Protection and Affordable Care Act (PPCA), individuals can receive tax credits to purchase health insurance in state-run markets. However, individuals must pay back up to $200 of the subsidy if they misreport their income.

Under the Patient Protection and Affordable Care Act, individuals can receive tax credits to purchase health insurance in state-run markets, according to SpineAdvocacy, the North American Spine Society's publication on government affairs. However, individuals must pay back up to $200 of the subsidy if they misreport their income.

The proposed physician payment cut stems from the sustainable growth rate (SGR), a key factor in annual Medicare payment updates. The SGR has resulted in a series of negative payment updates for several years.

The American Medical Association (AMA) applauded President Obama and members of Congress for halting the payment cut for 1 year and injecting stability into the Medicare physician payment system.

“The AMA thanks Senate Majority Leader Harry Reid, Finance Committee Chairman Max Baucus, Minority Leader Mitch McConnell, Finance Committee Ranking Member Charles Grassley and President Obama for their leadership,” Cecil B. Wilson, MD, AMA president, stated in a press release. “We look forward to building on this bipartisan effort to develop a workable long-term solution to the broken physician payment system that bedevils seniors, military families and physicians.”

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