Congress passes budget bill eliminating Medicare physician payment cuts

Legislation passed by Congress earlier this week eliminates the 4.4% reduction in physician Medicare Part B payments that went into effect Jan. 1.

Under the provisions of the Deficit Reduction Act, physician reimbursement in 2006 will be the same as in 2005.

The House of Representatives passed its version of the Deficit Reduction Act in mid-December, but procedural maneuvering by Senate Democrats in late December forced the House to pass the bill again this week. The 4.4% reduction was in place throughout January, but the Centers for Medicare and Medicaid Services announced in January that the agency would take action to quickly eliminate the payment reduction once the Deficit Reduction Act became law. CMS also announced it would reprocess claims submitted in January under the higher rate and extend the provider enrollment period to allow physicians to enroll as Medicare providers.