Congress is once again working to pass a longer-lasting freeze on cuts to Medicare physician payment rates, which are scheduled to be reduced by 21% on June 1.
Under discussion in the House is HR 4213, the American Workers, State, and Business Relief Act of 2010, which would hold off the cuts through the end of the year. The bill would provide "reasonable updates in physician payment rates for the rest of this year and next year," according to its text.
For 2012 and 2013, rates would continue to increase if spending growth on physician services is within reasonable limits, with an extra allowance for primary and preventive care. Rates could not be reduced in 2012 or 2013, but after that rates would return to their current law levels, according to Cynthia Moran, assistant executive director for government relations at the American College of Radiology (ACR) in Reston, VA.
"The legislation provides a 1.3% update effective June 1, 2010, and an additional 1% update on January 1, 2011," she said. "From 2012 to 2013, annual updates are based on two methods contained in the Medicare Physician Payment Reform Act of 2009 [HR 3961], although updates for both service categories cannot be negative in either of those years."
The total cost of the bill is estimated at $140 billion, of which $80 billion is allocated for extended unemployment benefits. None of the cost is offset with new revenues, according to Moran. The bill is expected to hit the House floor on May 21; if it is passed, it will go back to the Senate.
Related Reading
ACR asks Senate for Medicare fix, April 22, 2010
Obama signs bill averting 21% Medicare pay cut, April 16, 2010
Senate passes bill to delay SGR cut, April 15, 2010
Bill to delay SGR cut inches forward, April 14, 2010
CMS offers reprieve to SGR rate cuts, March 31, 2010
Copyright © 2010 AuntMinnie.com
