Plans Underway to Temporarily Keep Medicare Physician Payment Rates At Current Levels After Congress Fails To Pass Legislation

According to the Washington Post, the Department of Health and Human Services (HHS) Secretary Mike Leavitt has announced that the agency will maintain the current Medicare payment rate for physicians because Congress was unable to pass legislation to avert a 10.6% cut scheduled to go into effect on Tuesday before lawmakers left for the Fourth of July recess. According to the Post, congressional aides said the freeze to payment rates could last 10 days. A House-passed bill HR 6331 that would block the reduction to physician fees failed by one vote to receive the 60 votes in the Senate required to gain cloture last week. Senate Republicans opposed the bill because it would cut payments to certain types of Medicare Advantage plans, potentially jeopardizing access to care for the seniors enrolled in that program. Along the same lines, the White House had said it would veto the bill.

If carried out as planned the Center for Medicare and Medicaid Services (CMS) would have Medicare hold all new claims for 10 days, giving some leeway on claims payment changes until July 15th. This suggested 10-day extension would give senators three days after they return from their recess to approve legislation to curb the fee reduction. 

It is important for AMCNO members to note that when the Senate voted on the bill that would have avoided the 10% payment cut last week, both of Ohio’s Senators voted in favor of the bill. Congress does have the option of returning after the July 4th recess and passing a retroactive bill that will restore payment rates and make up for the cuts. It is imperative that physicians continue to encourage their members of Congress to reverse the payment cuts. AMCNO members should continue to contact our Senators on this issue – thank them for their support and also let them know how these cuts could impact your practice. Senator Voinovich may be reached at 202-224-3353 and Senator Brown may be reached at 202-224-2315.

The AMCNO will continue to update our members on this important issue as information becomes available.