Medical associations want CMS to start reprocessing Medicare claims effected by retroactive geographic adjustments in 2010. Dozens of organizations sent a letter urging the agency to reprocess claims as soon as possible.
"Throughout 2010, Congress enacted short-term, stop-gap measures for durations as short as one month," the letter (pdf) states. "On three occasions, Congress failed to act in time and Medicare payments were cut by more than 20%. The payment uncertainties and delays were highly disruptive. Many practices were forced to seek loans to meet payroll expenses, lay off staff, or cancel capital improvements and investments in electronic health records and other technology."
We've written extensively about the Medicare reprocessing issue. The latest Medicare pay fix bill includes $200 million to fund the reprocessing. Reimbursements effected by retroactive adjustments will slightly increase payments for most services, but some physicians practicing rural areas could see increases of nearly 10%.
The adjustments will have little impact, if any, on physicians practicing in large metropolitan areas.
The letter outlines six provisions in the health care reform law that impact physicians payments during the first half of 2010. The law:
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Extended the work geographic practice cost index (GPCI) floor of 1
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Increased the practice expense GPCI in low cost areas
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Extended the 5% mental health add-on
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Increased payments for bone density tests
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Extended of the therapy cap exception
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Extended a provision that allows independent labs to bill the technical component of physician pathology services.