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Weekly Healthcare Reform Update
21.2
percent cut stopped for 60 days; Senate poised to pass healthcare reform
On
Saturday, Dec. 19, the Senate followed the House and approved a 60-day
freeze on Medicare payment rates, thus, temporarily delaying the scheduled
21.2 percent cut to physician reimbursement. The Senate action came as part
of the FY 2010 Defense Appropriations bill, which was approved by a vote of
88-10. The language in the legislation is specific to the conversion factor
only and all other 2010 policy changes to the Medicare program will become
effective on Jan. 1. This afternoon, President Obama signed this bill into
law.
Earlier
this morning, the Senate approved a procedural vote to stop a Republican
filibuster, putting the chamber on a path to approve a final Senate version
of healthcare reform on Dec. 24. The 60-40 vote was strictly along partisan
lines. Senate Majority Leader Harry Reid, D-Nev., forged an agreement
within the Democratic caucus on a manager’s amendment to H.R. 3590 over the
weekend, which will allow the broader legislation to be approved by the
full Senate. Once the legislation is finalized, the House and Senate will
meet in a conference committee to resolve differences between the bills.
Major differences regarding financing, abortion, and the public option must
be addressed before a final piece of identical legislation can be sent back
to each legislative body for consideration.
There
are many differences between the House and Senate legislation of interest
to medical groups. Chief among them is the fact that the House, through
passage of H.R. 3961, repealed the flawed sustainable growth rate formula
(SGR) and provided for a positive update for 2010, while the Senate bill
does not repeal the SGR. However, the amended Senate bill includes some
positive changes from the version originally introduced. It eliminates a
previous provision that proposed paying for reimbursement increases to
primary care and general surgery through reductions to reimbursement for
other physician specialties. The bill also eliminates a proposed
enrollment fee for physicians who participate in Medicare and Medicaid, a
proposed cosmetic surgery tax, a state “opt-out” public option alternative
and a Medicare “opt-in” for uninsured 55- to 64-year-olds.
The bill
still contains provisions that raise major concerns for MGMA. These include
the failure to address the Independent Payment Advisory Board and a
proposal to release Medicare data relating to physician claims to
consumers. The Senate is expected to vote on final passage of their version
of healthcare reform legislation on Dec. 24.
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Dec. 21, 2009


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