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Senate passes 1-year Medicare physician payment update

A recent bipartisan agreement in the Senate uses provisions in President Obama’s health care law to extend the current 2.2% Medicare physician payment update for 1 year.

The $19 billion 1-year fix would be funded by raising limits on overpayment of consumer tax credits. Under the Patient Protection and Affordable Care Act (PPCA), individuals can receive tax credits to purchase health insurance in state-run markets.

Call to Congress

The president applauded the bipartisan effort and urged members of the U.S. House of Representatives to take up the measure.

“I am pleased Democratic and Republican leaders in the Senate have agreed on legislation that will prevent a significant pay cut for doctors from taking effect and help ensure seniors on Medicare can continue to see the doctor they know and trust,” President Obama stated in a White House press release. “I encourage Congress to act quickly on this proposal. This agreement is an important step forward to stabilize Medicare, but our work is far from finished. For too long, we have confronted this reoccurring problem with temporary fixes and stop-gap measures. It’s time for a permanent solution that seniors and their doctors can depend on and I look forward to working with Congress to address this matter once and for all in the coming year.”

Seeking long-term solutions

The agreement is expected to face little opposition in the House. Medicare physicians would avoid a 25% reimbursement cut if the deal is passed before Jan. 1.

The American Medical Association (AMA) noted that stopping the cut for 1 year will inject stability into the Medicare physician payment system.

“The AMA thanks Senate Majority Leader Harry Reid, Finance Committee Chairman Max Baucus, Minority Leader Mitch McConnell, Finance Committee Ranking Member Charles Grassley and President Obama for their leadership,” Cecil B. Wilson, MD, AMA president, stated in a press release. “We look forward to building on this bipartisan effort to develop a workable long-term solution to the broken physician payment system that bedevils seniors, military families and physicians.”

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