Congress Scales Back Physician Payment Plan; Passage Needed Before June 1 to Avert Cuts

Despite reaching agreement last week on a proposal that would have provided a four-year physician payment fix, House lawmakers have scaled-down a physician payment adjustment proposal to respond to concerns about the cost of the overall legislation. The new House compromise would extend relief from a physician payment decrease through 2011 rather than 2013. It would provide a 2.2 percent increase effective June 2010 and a 1 percent increase on January 1, 2011. Physician payment rates would revert to the current law formula on Jan. 1, 2012, but it is not known what the size of the cut would be required in 2012 or future years.

The House of Representatives is scheduled to vote on the measure sometime today. Senate approval also is required before the measure can be sent to the president, but it remains unclear whether the Senate will agree to the proposal and if it can be passed before a 21 percent Medicare physician payment cut is scheduled to go into effect on June 1. Senate Democrats continue to consider a shorter term physician payment adjustment while Senate Republicans have proposed an alternative measure (S 3421) that offers only a one-month extension of the fix to the physician payment formula.

Now is the time to take action and contact your representative and senators to urge passage of the House compromise. It is critical that Congress not depart for its Memorial Day recess without taking action to avert a 21 percent cut scheduled for June 1. Please visit the ASH Advocacy Center to join ASH’s advocacy campaign.

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