Vacation or Vote on Medicare? Vacation

On May 20, 2010, another temporary Medicare fix package was proposed to legislation and during that week lawmakers were moving forward with the 3 1/2 year fix.  However, the initial proposal was reduced to 19 months as the cost of the package would place a serious strain on the federal deficit.

 Although the House passed legislation to prevent the June 1st cuts, the Senate left for vacation on the 28th and will not return until June 7th.  That means that the Medicare cut will still take effect on June 1st.

The Centers for Medicare and Medicaid Services (CMS) has placed a 10 day hold on the processing of physicians June claims.  If contractors hold their claims, physicians may not see the reduced payment if the Senate decides to reverse the 21% cut after returning from vacation.

Physician organizations such as the the American Medical Association are annoyed with the Senate's lack of action.  Here's what J. James Rohack, AMA President had to say about the situation: 'The Senate has turned its back on seniors, and America's physicians are outraged that Congress has deserted patients by failing to address this year's Medicare cut before the June 1 deadline, Senators are more interested in heading home for the holiday than in preventing a Medicare meltdown for seniors.'

If the legislation is passed by the Senate, physicians will receive a 2.2% Medicare payment increase for the remainder of this year, and an addition 1% for 2011.  If a permanent solution is not in place by 2012, physicians can expect a 33% decrease in payment if reverted back to the old formula.  

For more information, visit the Amednews.