21% Medicare Fee Reduction

Congress Fails to Act: 21% Cut In Medicare Physician Fees Effective March 1

Yesterday, the House passed HR 4691, legislation that extends a number of expiring programs for 30 days, including current Medicare physician payment rates, which would have postponed for one month the 21% cut that is scheduled to take effect on March 1. The Senate attempted unsuccessfully on several occasions last night and this morning to pass the same bill by unanimous consent, but objections were raised by Senator Jim Bunning (R-KY), on the basis that the $10 billion cost of the program extensions was not offset. The Senate has now adjourned for the weekend, so the 21% Medicare physician payment cut will be effective on Monday, March 1.

The Centers for Medicare and Medicaid Services (CMS) are notifying their contractors to hold Medicare physician claims for 10 business days, effective Monday. The agency will also be sending out a similar message on its various list serves this afternoon to physicians, and contractors will be instructed to disseminate this information as well.

Med USA will continue to monitor this situation and keep you informed of the latest developments. If you have any questions please feel free to contact Liz Gardner at 801.352.9500 ext 1308 or email lgardner@medusabil.com