Update: 21% Medicare Rate Cut

Update: New Bill to Delay 21% Cut to Medicare Payments

Monday afternoon Senate Democrats introduced another bill that would temporarily delay the Medicare 21.2% rate cut that took effect yesterday, to October 1, 2010.

Besides postponing the Medicare pay cut, at a cost of $7.3 billion over 10 years, the American Workers, State, and Business Relief Act also extends expired unemployment benefits, subsidies for health insurance premiums, and various tax breaks. The new bill would continue assistance payments to state Medicaid programs authorized by last year's stimulus bill through June 30, 2011.

If the Senate approves the bill, the measure will go to the House. Should Congress enact the bill between now and March 12, physicians would not experience the 21.2% pay cut for services rendered during this period. This is because CMS instructed its carriers last week not to process Medicare claims for the first 10 business days of March. That delay would allow CMS to pay claims back to March 1 at the previous rate, assuming the pay cut is postponed.

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