US Senate Modifies
Medicare Payment Legislation

On Friday, June 18, the US Senate passed H.R. 3962, now called the "Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010," which provides for an increase of 2.2% in Medicare physician payment for June through November of 2010. You may recall the US House passed another version of H.R. 3962 in late May, which called for multi-year increases or freezes in physician payments, in lieu of the 21% cuts that went into effect on June 1.

Now, H.R. 3962 must return to the House to determine whether that chamber will agree with the changes made to the bill in the Senate. The House is not expected to take any votes until Tuesday, June 22. Until the US House passes the bill and the President signs it into law, the Centers for Medicare and Medicaid Services (CMS) has instructed its carriers to process Medicare physician claims at a 21 percent lower rate as of June 18. CMS had placed a hold on paying physician claims with the 21% cut required by the flawed Sustainable Growth Rate formula. If and when H.R. 3962 becomes law, CMS will retroactively adjust any June claims that have been paid at the lower rate. It is unclear, at this time, whether physician offices will be required to resubmit those claims.

One of KMA's five principles for health reform is repeal of the flawed SGR formula. To contact your Congressman about the SGR formula and reductions in Medicare physician payment, click the link below.

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