The U.S. House of Representatives rejected the two month extension of the Medicare Physician Fee Schedule previously agreed to by the U.S. Senate. The House instead voted to send the bill back to the Senate to conference the measure, which entails appointing representatives from both Chambers to a committee in an attempt to reach a compromise. Given that the Senate has adjourned for the holiday break, a deal is not likely to be reached before the cuts go into effect. The House is seeking a two year extension, which was included in a bill they passed earlier this month but the Senate did not consider that legislation prior to their adjournment.
Upon their return in January, Congress is expected to reach an agreement to stave off the greater than 27 percent cuts facing Medicare providers on January 1, 2012 due to the flawed Sustainable Growth Rate (SGR) formula. As such, the Centers for Medicare and Medicaid Services (CMS) is asking Medicare contractors to hold claims until that agreement is reached. This may result in delayed reimbursement from Medicare. Other measures in the bill that remain unaddressed due to Congress’ inability to reach consensus are the payroll tax cut and the Emergency Unemployment Compensation program, among others.
Academy members are encouraged to check with your Medicare contractor for additional information and the Academy will continue to provide updates as they are available. Please also urge your representatives to pass a long term solution to the SGR formula by visiting the Academy’s Legislative Action Center.