In a 395 to 34 vote, the U.S. House of Representatives on December 16 approved a $636 billion fiscal 2010 defense appropriations bill that also will delay Medicare physician payment cuts under the sustainable growth rate (SGR) formula, according to the Wall Street Journal.
The cuts -- which would have slashed physician payments by 21.2% starting January 1 -- are a result of provisions in the SGR formula that call for annual decreases in physician payments. The cuts have to be corrected every year through congressional action, such as last year's Medicare Improvements for Patients and Providers Act (MIPPA) of 2008.
Both the House and the Senate have passed standalone proposals to more permanently fix the flawed formula. In November, the House passed its Medicare Physician Payment Reform Act (HR 3961), which would have repealed the scheduled reduction and would replace it with a more stable system, the Medicare Economic Index (MEI).
But hope that these proposals could be synthesized into one bill and be approved has faded as the year comes to an end. The House's defense appropriations bill vote is a quick fix that will allow Congress more time to find a more permanent solution to the flawed formula.
The Senate is expected to vote on its version of the bill by December 18.
Related Reading
House passes bill to fix SGR formula, November 20, 2009
Effort to fix Medicare SGR formula fails, October 22, 2009
Societies rally to repeal Medicare SGR formula, October 21, 2009
CMS proposes 1.9% increase in hospital outpatient payments, July 8, 2009
CMS pitches 90% use rate in proposed 2010 MPFS rule, July 1, 2009
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