Medicare Physician Payment Fix Will Not Be Resolved Until After July 4

June 27, 2008 – Late last night, the U.S. Senate failed by one vote to pass Medicare legislation that would prevent the 10.6 percent physician pay cut, scheduled to begin on July 1. According to Senate rules, the body needed to have 60 votes to begin consideration of the Medicare legislation H.R. 6331 (the "Medicare Improvements for Patients and Providers Act of 2008"). The House had passed the measure by a veto-proof margin earlier this week.

Senate Majority Leader Harry Reid (D-NV) is determined to resolve this issue and there is bipartisan recognition that the payment cuts could undermine Medicare access for patients and will be unsustainable for physicians. Republicans and Democrats, however, disagree on how to pay for this measure.

Outlook: The 10.6 percent physician pay cut will go into effect July 1. Legislative efforts are expected to resume on July 7 at the earliest and could result in a retroactive fix. Please join ASH in contacting your Senators to urge immediate action to restore physician payment by participating in ASH's Advocacy Campaign.