Congress blocks Medicare physician payment cuts

The bill holds payments at 2005 rates, but requires Presidential backing.

In a re-vote on Wednesday, members of the House of Representatives agreed to a bill blocking physician payment cuts for one year.

The vote — 216 to 214 — reverses the original 4.4% payment reduction that went into effect on January 1, holding 2006 payments at last year’s rate. The bill still requires presidential approval before it can go into effect, which most observers consider a virtual certainty.

“Today's congressional action stops this year’s Medicare physician payment cut, but reimbursements still fall short of the cost of providing care to seniors,” J. Edward Hill, MD, President of the American Medical Association (AMA), said in a press release Wednesday. “The American Medical Association appreciates Congress’ recognition of the severity of the problem for America’s seniors who rely on Medicare,” he said.

The bill is part of the 2006 budget package that the House originally approved in December in a 212 to 206 vote. The Senate had also passed the bill in a down-to-the-wire vote of 51 to 50, in which Vice President Richard Cheney provided the tie-breaking vote. However, a technicality forced the bill back to the House for a second vote.

Physician payment rates are based on a statutory formula. From 2003 to 2005, Congress has intervened to counter physician payment cuts, but some contend that its interventions only provide quick fixes.

“While congressional action halts the current cut, the AMA will continue to advocate for a fair physician payment formula based on practice costs,” Hill said. “The current payment formula is tied to the ups and downs of the U.S. economy — not the growing health care needs of America’s seniors. We must build on the momentum and awareness raised in 2005 to make 2006 the year Congress permanently repeals the broken Medicare physician payment formula.”