Senate bill delays 21% Medicare physician payment cut

By a vote of 78 to 19, the U.S. Senate on Tuesday night passed a bill that extends unemployment benefits and delays a planned 21% cut in Medicare physician payments until April 1.

The vote came after Sen. Jim Bunning, R-Ky., agreed to end his withholding of unanimous consent that prevented the bill from being brought to the Senate floor for a vote. Sen. Bunning withheld unanimous consent on the grounds that the bill would increase the federal budget deficit without being paid for under recently-enacted pay-as-you-go (PAYGO) legislation requiring spending increases to be offset by funding.

The House approved the measure on Feb. 25. H.R. 4691, the Temporary Extensions Act, provides for a 0% Medicare physician payment update until March 31, according to a summary of the bill. The sustainable growth rate (SGR) is a key factor in annual Medicare physician payment updates.

The American Medical Association and other medical societies support changes to the SGR or its elimination.

“While the 30-day extension provides physicians and their patients immediate relief from the 21% cut, we do not support continued short-term solutions to the SGR problem,” Catherine Cohen, American Academy of Ophthalmology vice president for governmental affairs, said. “We must have a permanent solution and stability under Medicare.”

In November, the House passed a bill that would permanently repeal and replace the SGR.