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Medicare pay-fix provision removed from jobs bill

The 7-month, Medicare pay-fix section in the Senate jobs bill has been carved out -- leaving no clear path to removing the 21% payment cut set for March 1.

Senate Majority Leader Harry Reid (D-Nev.) cited concerns about the overall size of the bill for removing several provisions, including the pay-fix language, that amounted to $70 billion. So, it's looking more and more likely that the 21% cut will go through without further delay.

The AMA, arguably the most powerful physician lobby in Washington, opposed the temporary measure in the jobs bill. An AMA spokeswoman referred us to a Feb. 10 association statement when asked about the 7-month pay fix last week.

"It is deeply disappointing that the Senate is considering a short-term, Band-Aid approach through the pending jobs bill," J. James Rohack, MD, AMA president said. "The AMA opposes yet another temporary patch that will create instability for seniors and military families who rely on Medicare and TRICARE.

"Both Republicans and Democrats recognize that the current Medicare physician payment formula is fatally flawed. Through permanent repeal of the formula, Congress has an opportunity to pass legislation that will preserve the security and stability of Medicare's physician foundation for years to come. AMA and AARP, as well as the Military Officers Association of America are urging Congress to stop applying Band-Aids to the problem and instead pass a permanent solution."

At this point, it's unclear what Congress will do next. Will they continue to throw "Band-Aids" at the problem or go for a permanent solution to the problem. We'll have more on the pay-fix problem later this week.

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Reader Comments (1)

It is not too late to change to non-par status with medicare for 2010. This pay cut, coupled with the loss of consultation charges, means a nearly 30% decrease in reimbursement.  Physicians can recover some of that loss by going non-par. I changed in January 2010 and have only had one patient say that they would no longer see me. If Congress doesn't fix the physician payment formula, opting out of Medicare is the next option. If we are doing charity work, at least let me deduct the cost to me from my taxes.

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