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February 26, 2010 — Unless a minor bipartisan miracle happens in Congress over the next few days, physicians will
go over the cliff on Monday. That's when a scheduled 21.2% cut in Medicare reimbursement takes effect.
Leaders of organized medicine call this reduction "the cliff" because, in their view, many physicians will not be able
to afford to see new Medicare patients, or even stay in the federal program, or even stay in practice if their Medicare pay
drops by more than one fifth. They also call it a cliff for seniors who may not be able to find a physician willing to treat
them.
For months, congressional Democrats have tried to pass legislation to avert the massive pay cut, which was triggered by
the notorious sustainable growth rate formula that Medicare uses to set physician reimbursement. However, Democrats were once
again thwarted this week when Sen. Jim Bunning (R-KY) blocked a bill that would have extended the deadline 30 days. Sen. Bunning
said he couldn't live with the bill, which also would have temporarily extended unemployment benefits, COBRA subsidies, and
other programs, because Senate Democrats hadn't figured out a way to pay for it, and thus would be adding to the already swollen
federal deficit.
The House passed a similar measure on Thursday, but it takes 2 chambers of Congress and a president's signature to make
a law.
Senate Democrats will attempt to set a new effective date for the 21.2% Medicare pay cut with another bill that they plan
to introduce next week, said Regan Lachapelle, deputy communications director for Senate Majority Leader Harry Reid (D-NV).
Lachapelle told Medscape Medical News that this bill would grant long-term extensions for a variety of federal initiatives.
"The doc fix would be longer than 30 days," she said.
Lachapelle said there was no likelihood that the Senate would introduce this second bill addressing the Medicare pay cut
before Monday.
If physicians are true to their warnings, Medicare patients next week may experience difficulty making an appointment.
A recent poll conducted by several medical societies representing neurosurgeons, for example, revealed that almost 40% would
cut back on seeing new Medicare patients if reimbursement continues to decline, while 18% would stop accepting new Medicare
patients altogether. Another 27% said they would treat fewer established Medicare patients.
February 26, 2010 — Unless a minor bipartisan miracle happens in Congress over the next few days, physicians will
go over the cliff on Monday. That's when a scheduled 21.2% cut in Medicare reimbursement takes effect.
Leaders of organized medicine call this reduction "the cliff" because, in their view, many physicians will not be able
to afford to see new Medicare patients, or even stay in the federal program, or even stay in practice if their Medicare pay
drops by more than one fifth. They also call it a cliff for seniors who may not be able to find a physician willing to treat
them.
For months, congressional Democrats have tried to pass legislation to avert the massive pay cut, which was triggered by
the notorious sustainable growth rate formula that Medicare uses to set physician reimbursement. However, Democrats were once
again thwarted this week when Sen. Jim Bunning (R-KY) blocked a bill that would have extended the deadline 30 days. Sen. Bunning
said he couldn't live with the bill, which also would have temporarily extended unemployment benefits, COBRA subsidies, and
other programs, because Senate Democrats hadn't figured out a way to pay for it, and thus would be adding to the already swollen
federal deficit.
The House passed a similar measure on Thursday, but it takes 2 chambers of Congress and a president's signature to make
a law.
Senate Democrats will attempt to set a new effective date for the 21.2% Medicare pay cut with another bill that they plan
to introduce next week, said Regan Lachapelle, deputy communications director for Senate Majority Leader Harry Reid (D-NV).
Lachapelle told Medscape Medical News that this bill would grant long-term extensions for a variety of federal initiatives.
"The doc fix would be longer than 30 days," she said.
Lachapelle said there was no likelihood that the Senate would introduce this second bill addressing the Medicare pay cut
before Monday.
If physicians are true to their warnings, Medicare patients next week may experience difficulty making an appointment.
A recent poll conducted by several medical societies representing neurosurgeons, for example, revealed that almost 40% would
cut back on seeing new Medicare patients if reimbursement continues to decline, while 18% would stop accepting new Medicare
patients altogether. Another 27% said they would treat fewer established Medicare patients.
MEDICARE PAYMENTS
CUT 21.2 PERCENT AS OF APRIL 1
Last week, the Senate failed
to pass a series of extensions to existing deadlines, including one that would have extended a temporary halt to the 21.2
percent cut in Medicare physician payments. As a result, the reduction in Medicare physician reimbursement took effect on
April 1.
The Continuing Extension Act of 2010 (H.R. 4851) received
the House’s approval on March 17 and would have maintained the current
conversion factor of $36.0666 through April 30. With Congress currently on
spring recess, the Senate plans to revisit H.R. 4851 when it reconvenes April
12. The temporary extension included in H.R. 4851 would stop the 21.2 percent cut through the end of April and would be retroactive to April 1. Because of the
short-term nature of H.R. 4851, the 21.2 percent cut would be delayed only temporarily until May
1. In anticipation of congressional action to avert the cut during the week of April
12, the Centers for Medicare & Medicaid Services (CMS) will instruct contractors to hold all claims for the first 10 business
days of April before processing. The hold begins April 1 and affects only claims filed on and after that date. The American College of Surgeons (ACS) advises
all Fellows to continue submitting claims using current payment rates.
The ACS has repeatedly called upon Congress
to stop the cycle of cuts in Medicare reimbursement, which threaten Americans’ access to surgical care. Furthermore,
the College continues to strongly advocate for much-needed Medicare physician payment reform, including repeal of the sustainable
growth rate methodology, to ensure that surgeons and their practices can continue to deliver high-quality surgical care to
all patients who need it. For more information, contact ahp@facs.org.
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