June 24, 2010
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House stalls SGR fix; payment cuts go into effect

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The proposed 6-month fix to the sustainable growth rate (SGR) passed by the Senate last Friday has been held up by House leaders who say they will not act on the legislation until the Senate broadens it to include, among other things, a long-term unemployment benefit extension.

The Senate legislation would have reversed a 21% cut in Medicare physician payments and raised payments 2.2% until Nov. 30.

However, late last week, Speaker of the House, Nancy Pelosi, issued a statement calling the Senate version of the inadequate.

“The bill Senate Republicans allowed to pass is not only inadequate with respect to physician fees, but it ignores urgent sections of the House bill to provide jobs. The House has repeatedly sent jobs-creating bills to the Senate since December — Build America Bonds, small business hiring incentives, and importantly, summer jobs — and yet Republicans continue to block approval of jobs legislation,” Pelosi said in a statement on her website.

As of last Friday, CMS has instructed its Medicare contractors to start processing claims from June 1 to reflect the 21% payment cut.

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