2009-10-21
The U.S. Senate was unable to get enough
votes to begin debate on the Medicare Physician Fairness Act of 2009 (S 1776). This bill, introduced by Senator Debbie
Stabenow (D-MI), would have permanently repealed the Medicare sustainable growth
rate (SGR) formula that was included in 1997 legislation and set future payment
rates at current levels. The bill was viewed as an opportunity to fix the SGR formula that has prescribed annual cuts in
Medicare payments to doctors — cuts that for years Congress
has avoided with yearly stop-gap measures. The principal argument made against S 1776 was
that the cost (roughly $245 billion over 10 years to end cuts to Medicare’s
physician payment rates) was not offset by spending cuts or revenue increases. The
motion to begin debate on the bill required 60 votes, but failed by a large
margin 47-53.
This
outcome led Senate Majority Leader Harry Reid (D-NV) to announce that the
Senate would defer further action on the bill until it completes broader
legislation that would overhaul the health-care system. In the interim, Democratic leaders are making
assurances to physicians that the physician payment bill will be enacted by
year’s end. Senator Reid stated at a
news conference that he would bring up the 10-year freeze after health reform
legislation is passed and will settle for a one-year fix in the meantime – the
Senate Finance Committee had included a one-year fix for physician payment as
part of the broad health reform legislation it approved last week and is now being
melded with a health reform bill passed last summer by the Senate Health,
Education, Labor, and Pensions Committee.
Health reform bills passed by committees in the House of Representatives
also included a permanent adjustment of the physician payment formula, and House
leadership is currently working to finalize a bill to be voted on by that
chamber
Current
statute calls for a Medicare physician payment cut of 21 percent beginning January 1,
2010, unless new legislation is enacted.
For
more details on health reform, see below.
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