Medicare Payment Cuts Update

On March 10th, the Senate voted 62-36 to approve a $138 billion bill that would temporarily prevent Medicare payment cuts to doctors as well as extend federal Medicaid assistance and COBRA premium subsidies. The legislation would specifically ward off a 21% cut to Medicare physician payments, triggered by its sustainable growth-rate formula, until Oct. 1. Physician organizations, including the AMCNO, are hoping that Congress will deliver on a more permanent solution to Medicare's SGR formula, which is based on the economy's health and has been threatening payment cuts to doctors since 2003. The SGR measure is expected to cost $7.3 billion over 10 years. It also contains a six-month extension in additional federal financial assistance for state Medicaid programs, and would extend COBRA and unemployment insurance benefits through the end of the year. The bill heads back to the House, which passed an earlier version of the bill. At deadline it was unclear if the House and Senate would schedule a conference to work out their differences, or if the House would simply vote on the bill with the Senate's changes, before it was sent to the president. 

The AMCNO believes strongly that it is time for Congress to act to repeal the Medicare physician payment formula once and for all and stop the band aid fixes year after year. We will keep our members apprised as this issue moves forward.