February 17, 2012
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House passes measure to delay Medicare physician payment cut

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The U.S. House of Representatives has passed a compromise measure that delays for 10 months a 27.4% Medicare physician payment cut. The cut was scheduled to take effect March 1.

The vote was 293 in favor of the measure and 132 in opposition.

The House-Senate conference report includes job creation incentives to be added to H.R. 3630, a bill that also extends the payroll tax cut and unemployment benefits. The report calls for cuts to federal employee salaries and benefits. The $20 billion Medicare payment fix will be offset by cuts in other areas of the federal health care budget.

The Senate is expected to vote on the measure later today, and President Barack Obama is expected to sign the bill into law.

The House and Senate forged an agreement on the report on Feb. 14. Deliberations on the report began in late January.

On Dec. 23, the House passed a bill that delayed the payment cut for 2 months.

An original House version of the bill, passed Dec. 13, called for a 2-year delay of the Medicare payment cut and extension of the payroll tax cut. The Senate passed a bipartisan compromise measure on Dec. 17 that called for a 2-month extension of the payroll tax cut and current Medicare physician payment rate. The House rejected the measure on Dec. 20 and voted to send the bill to conference. House Republican leadership changed course on Dec. 23, endorsing the 2-month extension and allowing more time for debate.

The physician payment cut results in part from the sustainable growth rate (SGR), a key factor in annual Medicare payment updates. Medical societies including the American Medical Association have called for the SGR to be amended or repealed.