Senate Committee Considers Legislation to Prevent Scheduled Physician Payment Cut

November 7, 2007 – The Senate Finance Committee conducted a closed meeting to discuss a Medicare package that would reverse a 10.1 percent reduction in physician fees scheduled to take effect on January 1, 2008, but the details of the proposal remain undetermined. Committee Chair Max Baucus (D-Mont.) has proposed a $30 billion Medicare package that would suspend the scheduled reduction in physician fess for two years and increase payments to providers in rural areas and prevent a reduction in rehabilitation therapy reimbursements.

However, committee ranking member Chuck Grassley (R-Iowa) has proposed a one-year suspension of the scheduled reduction in Medicare physician fees, a proposal that would require a smaller decrease in payments to private Medicare managed care plans, known as Medicare Advantage (MA), and other areas to offset the cost.

The committee focused on a potential reduction in reimbursements to private fee-for-service MA plans to offset the cost of the Medicare package. The committee also considered reductions in Medicare reimbursements for medical imaging and home oxygen services.

A timetable for a mark up of the Medicare package remains undetermined, and it is critical that all physicians contact their Members of Congress to urge the passage of legislation to prevent scheduled cuts before the end of this year. To join ASH’s advocacy efforts, please visit the ASH Advocacy Center to send an e-mail to your Congressmen.