03/29/2010 - News

Medicare Pay Cut to Take Effect April 1

By: June Chen, MD

Tools:

On March 26, 2010, the U.S. Senate failed to pass a bill extending the effective date of the scheduled Medicare pay cut to May 1, due to a procedural block placed by a Republican Senator from Oklahoma. Therefore, a 21.2% Medicare pay cut will take effect this Thursday, April 1.

However, this is probably not the end of the Medicare drama that has been unfolding over the past few weeks. When Congress is back in session on April 12, Senate Democrats will likely try to pass the 1-month extension again and make it retroactive to April 1. As before, the Centers for Medicare and Medicaid Services has announced that it will hold all Medicare claims for the first 10 business days of the month and pay the full amount if and when the extension passes in the Senate. 

The president of the American Medical Association, J. James Rohack, M.D., issued a press release denouncing the failure of the Senate to delay the Medicare pay cut. He reiterated that the 21.2% Medicare pay cut would force doctors to turn away not only seniors, but also military families whose medical coverage is based on Medicare rates. The position of the American Medical Association remains that Congress should repeal the sustainable growth rate formula that Medicare uses to determine physician reimbursement. 

If the Senate approves the 1-month delay, Democrats in Congress will continue to work toward passing a bill authorizing an extension of the Medicare pay cut to October 1.

 

Created on: 03/29/2010
Reviewed on: 03/29/2010

No votes yet
Tools: