Updated at 3:10 PM ET
The U.S. House on Thursday afternoon voted 409-2 to delay by one year the nearly $20 billion in Medicare reimbursements cuts to physicians that were due to take effect Jan. 1.
The overwhelming and bipartisan vote came one day after the measure garnered unanimous consent in the Senate. President Obama said he supports the delay. He also called for a permanent solution to the "doc fix," a perennial Congressional sideshow.
"This agreement is an important step forward to stabilize Medicare, but our work is far from finished," Obama said. "For too long, we have confronted this reoccurring problem with temporary fixes and stop-gap measures. It's time for a permanent solution that seniors and their doctors can depend on and I look forward to working with Congress to address this matter once and for all in the coming year."
The Sustainable Growth Rate formula for Medicare funding dictates the cuts, which have repeatedly been temporarily delayed – including five times this year -- since Congress passed the measure a decade ago. In the latest round of cuts, physicians were facing a 25% reduction in Medicare reimbursements on Jan. 1. Delaying the cuts is expected to cost about $19.2 billion.
The American Medical Association praised the lame duck Congress for its bipartisan support of the measure.
"Stopping the steep 25% Medicare cut for one year was vital to preserve seniors' access to physician care in 2011," said AMA President Cecil B. Wilson, MD. "Many physicians made clear that this year's roller coaster ride, caused by five delays of this year's cut, forced them to make difficult practice changes like limiting the number of Medicare patients they could treat."
Wilson echoed the president's call for a permanent SGR solution. "The AMA will be working closely with Congressional leadership in the new year to develop a long-term solution to this perennial Medicare problem for seniors and their physicians. This one-year delay comes right as the oldest baby boomers reach age 65, adding urgency to the need for a long-term solution before this demographic tsunami swamps the Medicare program," he said.
The bill, the Medicare and Medicaid Extenders Act of 2010, also includes extensions of other expiring healthcare provisions, including protections for rural hospitals and doctors, Transitional Medical Assistance and the Special Diabetes Program.
Senate leaders patted each other on the back Wednesday after approving the extension, which demonstrated a rare show of cooperation on Capitol Hill.
"This bipartisan agreement gives peace of mind to seniors and military families in Nevada and across the nation," said Senate Majority Leader Harry Reid (D-NV). "We ensured that our seniors and veterans can continue seeing their doctors and getting the treatment they need."
Senate Minority Leader Mitch McConnell (R-KY) said he was "encouraged that we were able to work together in a bipartisan way and protect access to care for America's 45 million Medicare beneficiaries in a fiscally responsible manner."
Reid's office said the legislation would be paid for by modifying the policy regarding overpayments of the healthcare affordability tax credit. This policy does not change the tax credits for which people are eligible based on their income. Instead, the proposal would change the way people pay back overpayments when they have received more credit than they are eligible for because, for example, they earned more money than expected in a given year.
Under current law there is a flat cap of $250 for individuals and $400 for families on the amount of the healthcare affordability tax credit people are required to pay back when they received an overpayment. This payback cap is the same for people earning 160% of the federal poverty level and 360% of the federal poverty level. Under this proposal for correcting overpayments, the cap on the payback amount would be on a sliding scale based on the income of the recipient of the tax credit, making the policy fairer to both recipients and all taxpayers, Reid's office said.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.