The Senate on Dec. 19 passed a Defense Department spending bill that included a 2-month delay in the scheduled 21% cut in the rate Medicare pays physicians. President Obama signed the bill into law the same day.
Physician groups hope to secure a permanent overhaul to the Sustainable Growth Rate (SGR) formula, which governs the Medicare payment rate.
In a statement, Dr. J. James Rohack, president of the American Medical Association, said that the group agreed with Senate Majority Leader Harry Reid (D-Nev.) who removed a 1-year fix from his health reform package with an aim of separately winning a permanent overhaul.
“As we call for a permanent solution, the AMA acknowledges the House and Senate votes to stop the cuts for 2 months so that access to care for Medicare and TRICARE patients is not disrupted while the Senate works on solving the problem once and for all,” he said.
The House of Representatives voted for a permanent fix in a stand alone bill, but the Senate later rejected it. Neither the House nor the Senate has included a permanent fix in their respective health reform bills.
The fee reduction was due to go into effect Jan. 1. Lawmakers had ways left to avert that cut, and thus attached the delay to the Defense spending bill, knowing that, with American military in Iraq and Afghanistan, it was a must-pass proposal.
The $636 billion Defense appropriations bill had passed the House. The package includes almost $14 billion in non-Defense spending, including an extension of unemployment benefits and subsidies to help pay for COBRA benefits. The Senate passed the bill on an 88-10 vote.