Updated Nov. 30, 2010.
With just a day to spare, the House of Representatives Monday approved a one-month delay in its scheduled 23% payment cuts to physicians' Medicare fees that was to take effect Dec. 1, as defined by the sustainable growth rate formula. The Senate took similar action earlier this month.
The delay is designed to give lawmakers time to come up with a better plan to reduce costs without driving doctors out of the Medicare program in droves, as organized medical groups have threatened.
The American Medical Association, which earlier this month called for a one-year reprieve to give newly elected officials time to develop a permanent solution, issued a statement expressing guarded approval.
"While this short-term delay helps ensure that physicians can continue to care for seniors for the next month; congressional action early in December to stop the cut for one year will inject stability into the Medicare program and ensure that Medicare delivers on its promise of health coverage for America's seniors," said AMA president Cecil Wilson. "It is crucial that Congress act well before the January 1 deadline so there are no disruptions in care for seniors.
"The oldest baby boomers will ring in the New Year as the first of their generation to turn 65 and will begin relying on Medicare. Congress is responsible for ensuring that the baby boomers can see a doctor through Medicare by enacting long-term reform next year of the broken Medicare physician payment system," he said.
"The AMA urges Congress to build on the bipartisan action that delayed this year's cut and act in December to stop the cut for one year so that Congress has time to work on a long-term solution."
"This bill is a stopgap measure to make sure that seniors and military families can continue to see their doctors during December while we work on the solution for the next year," said Rep. Frank Pallone, R-N.J., chairman of the Energy and Commerce health subcommittee was quoted in a story from ABC News.
The American Hospital Association called the move by Congress "a good first step." And The American College of Physicians released a video featuring physicians, in their own words, urging Congress to make the doc fix.
With no action by Jan. 1, payment for physicians who treat patients under Medicare and TRICARE will be reduced 23% plus another 1.9% for a total of nearly 25%.