Medicare Payment Cuts Still Looming

Remember that the clock is still ticking on the 10.1 percent cut in Medicare physician payments scheduled to take effect Jan. 1, 2008. Lawmakers need to hear from AMCNO members and your patients about the urgency of this matter. It is important that Congress act now to stop the pending Medicare physician payment cuts. Even if you have contacted your members of Congress already via the AMCNO website or by letter, you can also call the AMA Grassroots Hotline at (800) 833–6354 to be connected to their offices. Urge them to ask their leadership to pass legislation that provides positive Medicare physician payment updates and does not increase the cost of future physician payment interventions.

Chair Max Baucus (D-Mont.) has said that any new Senate legislation regarding reversing the payment cuts would not include any cuts to Medicare Advantage plans. Previously, Baucus had said that Medicare legislation would include MA plan cuts. The Bush administration has threatened to veto any legislation containing cuts to MA plans Finance Committee ranking member Chuck Grassley (R-Iowa) has indicated that the Republicans would not accept any Medicare package that contains new policy, only fixes to "present policy." In addition to stopping the Medicare physician fee cut, the Senate bill could include a small increase to physician payments or none at all, according to some publications. House Republicans have been pushing for extensions to rural and low-income subsidies, transitional Medicaid assistance and payments for rehabilitative services. It is unclear if the legislation will contain a provision to mandate electronic prescriptions for Medicare.