Congress Fails to Prevent April 1 Medicare Pay Cut Before Leaving for Spring Break
March 29, 2010Despite objections raised by the AOA and other patient and provider groups, Congress has adjourned for its two-week spring recess without acting to prevent a massive 21 percent cut in Medicare physician reimbursement set to take effect April 1.
Late last week, legislation aimed at preventing the cut in payments stalled on the floor of the U.S. Senate after it was blocked by Sen. Tom Coburn (R-OK) on the basis that it should not be considered emergency spending, which would exempt the bill’s price tag from budgetary offset requirements.
The bill (HR 4851), which has already passed the U.S. House, includes another 30-day freeze of current Medicare physician payment rates – this time through Apr. 30 – as well as an extension of COBRA benefits and unemployment insurance for Americans who have lost their jobs.
As a result of this inaction, the U.S. Centers for Medicare & Medicaid Services (CMS) has instructed its contractors to temporarily hold fee-for-service claim processing; anticipating Congress will once again intervene to prevent the planned cuts.
“However, this hold should have a minimum impact on provider cash flow because, under current law, clean electronic claims are not paid any sooner than 14 calendar days (29 for paper claims) after the date of receipt,” the CMS noted.
The Medicare physician fee schedule was originally to have been cut 21 percent on Jan. 1, 2010 as part of a scheduled cut mandated by the current Medicare payment formula, but Congress acted late last year to freeze payment rates at 2009 levels through Feb. 28, 2010.
Then, Congress acted again – just as hundreds of ODs and students stormed Capitol Hill as part of a massive grassroots advocacy push during the AOA Congressional Advocacy Conference – to extend the freeze through Mar. 31, 2010.
With Congress absent from the nation’s capital for the next two weeks, the AOA Advocacy Group has indicated that Senate action on the measure could come as soon as Apr. 12 – when Congress returns from its break.
Concerned doctors and students can use the AOA’s Online Legislative Action Center to contact their elected officials directly and urge them to prevent impending cuts as well as advocate for long-term reform.
For more information on this priority issue and how to join the AOA’s efforts on Capitol Hill, please contact the AOA Washington Office directly at ImpactWashingtonDC@aoa.org
[...] News from the AOA's Blog Just another WordPress.com weblog « Information for AOA Members on Health Care Overhaul Legislation Congress Fails to Prevent Apr. 1 Medicare Pay Cut, ODs Urged to Hold Medicare Claims April 6, 2010 Despite objections raised by the AOA and other patient and provider groups, Congress has failed to prevent a massive 21 percent cut in Medicare physician reimbursement from taking effect Apr. 1 (see Mar. 29 article). [...]