News from the AOA's Blog

As the post-election “lame duck” session of Congress resumes, one of the first actions of the U.S. House of Representatives this week was to approve an AOA-backed measure which provides a month-long reprieve for optometrists and other physicians from threatened cuts in Medicare physician payments.

Late Monday, by voice vote, the U.S. House approved the Physician Payment and Therapy Relief Act of 2010 (HR 5712), which provides $1 billion to delay – for one month – a massive 23% cut in Medicare reimbursement rates for optometrists and other physicians, which was scheduled to take effect December 1.    

The Senate approved the bill – unanimously – on November 18, however Congress had recessed for its Thanksgiving break before the lower chamber had given its final approval. The President is expected to sign the bill into law, making this the fifth short-term “patch” and subsequent extension of the current Medicare rates in the past year.  

The one month extension will be paid for by a new CMS policy that reduces Medicare payments for multiple therapy services provided to patients in one day.  In addition to redirecting the funds saved, the measure would reduce from 25 percent to 20 percent the discount rate used under the CMS policy to provide relief to affected therapists.

The AOA and a coalition of other physician and patient groups are continuing to work in support of a more long-term physician payment reform and an end to the uncertainty of the current payment system, although there continues to be no clear consensus among Democrats and Republicans on how to pay for a long-term fix.  

Under Congress’s budgetary “pay-as-you-go” rules, bills to prevent cuts in Medicare reimbursement rates do not need to be offset, but amid deficit concerns only fully funded bills are likely to advance. According to the Congressional Budget Office, a 13 month patch would cost about $15 billion.  A long-term formula fix through 2020 – which AOA believes is needed – would cost about $276 billion.  

Concerned doctors and optometry students can take action and contact their U.S. Senators and House of Representatives members on this issue through the AOA’s Legislative Action Center — http://www.aoa.org/x4821.xml or by contacting the AOA Washington Office at ImpactWashingtonDC@aoa.org for more information on the Federal Keyperson program or AOA-PAC.