Medicare Cuts Delayed Again – COBRA Subsidies Continued

Both the House and Senate have approved a package of short-term “extenders,” which includes a freeze on the Medicare payment formula used to reimburse doctors and continues a financial reprieve for the unemployed who rely on COBRA health benefits. The House passed the $18 billion package 289-112. The Senate advanced the bill, 59-38. The votes came on the same day that a scheduled 21.2% pay cut officially went into effect. It's possible that Medicare's payment contractors could process some claims with the cut in play.

The legislation extends until June 1 the current higher level of physician payment, but also extends federal assistance for COBRA premiums until May 1. It is possible that some claims for physician services were processed at rates reflecting the 21.3 percent cut. If that has occurred the Centers for Medicare and Medicaid Services have indicated that any such claims will be reprocessed and payment adjustments made without physicians having to take any additional action.