Obama signs bill averting 21% Medicare pay cut

Both the U.S Senate and House of Representatives passed legislation yesterday that once again temporarily delays the 21% cut in physician reimbursements mandated by the sustainable growth rate (SGR) formula, this time through May 31.

The Senate had approved the bill with a vote of 59 to 38 and sent it on to the House, which voted 289 to 112 to enact it. Late last night, President Barack Obama signed the $18 billion package into law.

The amendment is part of an overall bill that will temporarily extend funding for other federal programs such as unemployment benefits, COBRA health insurance subsidies for the unemployed, and the national flood insurance program.

The move came not a moment too soon, as the U.S. Centers for Medicare and Medicaid Services (CMS) was poised yesterday to begin processing reimbursement claims using the 21% cut.

In an April 15 e-mail to AuntMinnie.com, Ellen Griffith of CMS' Office of External Affairs confirmed that the agency was planning to begin processing claims under its Medicare Physician Fee Schedule (MPFS) with dates of service April 1 and later under the 21% cut, if Congress failed to act.

Congress is expected to take up legislation to delay the Medicare payment cut until October 1; both congressional bodies have passed separate bills to this end, but they are in negotiations about how it will be paid for.

By Kate Madden Yee
AuntMinnie.com staff writer
April 16, 2010

Related Reading

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

Medicare SGR cut to go into effect April 1, March 29, 2010

Senate extends SGR deadline until October, March 11, 2010

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