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House votes to stall Medicare physician payment cut until Dec. 31
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By voice vote Monday, the U.S. House of Representatives passed a bill that delays a 23% reduction in Medicare physician payments until Dec. 31.
The Senate unanimously passed the measure on Nov. 18. The cut was scheduled to take effect Dec. 1.
H.R. 5712, the Physician Payment and Therapy Relief Act of 2010, reduces Medicare payments for certain outpatient therapy services by $1 billion and siphons the funds to Medicare physician payments at the current rate until the statutory deadline. The measure also includes a 2.2% update in physician payments through Dec. 31.
The proposed payment cut stems from the sustainable growth rate (SGR), a key factor in the Medicare physician payment formula. The SGR has resulted in a series of negative payment updates for several years.
Physicians face a 25% payment cut on Jan. 1, barring further congressional action, according to the American Medical Association.
In a statement the AMA issued after Monday’s House vote, Cecil B. Wilson, MD, president of the AMA, praised the short-term reprieve but called on Congress to enact a 12-month fix to give the next Congress sufficient time to permanently change the Medicare physician payment formula.
“It is crucial that Congress act well before the Jan. 1 deadline so there are no disruptions in care for seniors,” Wilson stated in the release.