Senate Stalls Medicare Legislation

June 12, 2008 - This afternoon the U.S. Senate failed to advance Medicare legislation that would prevent the 10.6 percent physician pay cut. According to Senate rules, the body needed to have 60 votes to begin consideration of the Medicare legislation (S. 3101, the Medicare Improvements for Patient and Providers Act). With a vote of 54 to 38, the Senate came up short. Senate leadership had indicated earlier this week that it would not be able to avert the physician payment cut set to begin on July 1 if legislation did not move forward this week.

Members of Congress however, do understand the importance of preventing the 10.6 percent cut and still may be able to work out an agreement.

The S.3101 bill would halt the Medicare Physician payment cuts scheduled for July 1 and January 1, 2009, by extending the current 0.5 percent update through the rest of this year and providing an additional 1.1 percent update through 2009. In addition, there are several other issues addressed, including an extension of the payment rule through 2010 for therapeutic radio-pharmaceuticals. The bill also promotes electronic prescribing, expands rural health care programs and requires Medicare to promptly pay pharmacies for medication dispensed to beneficiaries. The bill would cost about $20 billion and be funded through reductions to Medicare Advantage programs. In addition, the legislation would limit a process called "deeming," under which private health insurers force health care providers to participate in Medicare Advantage plans when they treat beneficiaries enrolled in those plans.

ASH has been closely monitoring the Medicare issue. For recent developments, see the Policy and Practice news section of the ASH Web site. The Society will continue to keep members apprised of all developments.