Senate Close to Spiking Doc Pay Cut

Senate Democrats are inching closer to approving an amendment that would finally reinstate physician Medicare payment rates to the March 31 level—at least until June 1.

An amendment proposed by Senate Finance Committee Chairman Max Baucus (D-MT) was approved in a 60-40 vote Wednesday night that would stop—at least temporarily—the 21% cut in physician reimbursements mandated by the sustainable growth rate (SGR) formula.

The amendment calls for exempting the payment provision from a Senate rule that says all spending legislation must be paid for under the Senate's "pay as you go" rule.

The full bill that is currently under debate calls for temporarily extending funding for several other federal programs that have expired, including unemployment benefits and COBRA benefits.

That bill is expected to be voted on by the Senate today or tomorrow.

Physicians have not encountered the cuts that went into effect April 1 because—for the second time this year—the Centers for Medicare and Medicaid Services (CMS) called for Medicare contractors to hold claims for performed services for the first 10 business days of the month (which expired yesterday).

J. James Rohack, MD, president of the American Medical Association, said Thursday that physicians remain in "limbo" waiting for Congress to act.

"This continued uncertainty coupled with the fact that Medicare payments, even without the 21% cut, have not kept up with the cost of providing care to seniors demonstrates the need for a permanent solution to this annual problem."

Rohack said 25% of Medicare beneficiaries are already having trouble finding a primary care physician. Cutting the payment will not help matters.

"Fixing the Medicare physician payment problem is essential to the stability of Medicare. If Congress fails to repeal the formula, the problem will continue to grow. Seven times in seven years, Congress voted not to impose cuts triggered by the flawed payment formula, putting off paying for it until another day," he said.