Medicare Pay Undergoes 21.2% Cut

Medicare Pay Undergoes 21.2% Cut

The American Medical Association, other physician organizations and seniors groups are looking forward to a long-term solution to the Medicare physician payment system, which will undergo a 21.2 % cut from March 1st onwards. But the reform movement lost momentum, when Massachusetts Senator Scott Brown, defeated state Attorney General Martha Coakley, in a special election in January, for the Senate seat vacated by the death of Democratic Sen. Edward Kennedy, last August.

After the election, Senate lawmakers proposed a five-year patch on the Medicare physician pay. But in a news conference with AARP and the Military Officers Assn. of America, the AMA advocated to adopt a House-passed permanent solution for the pay system.

"We absolutely do not want a temporary fix. The House has done its part by passing a permanent fix," Now it's the Senate's turn", " said Nancy H. Nielsen, MD, PhD, AMA immediate past president.

Senate Democrats could have used a parliamentary tactic, known as 'reconciliation', to pass a more limited reform measure, either as part of a deal to revise portions of the broader Senate bill that the House opposes or as a stand-alone bill. That tactic would have allowed a simple majority approval in the Senate.

Some policy experts said that reconciliation is a complex procedure with a limited scope. Thus, the lawmakers may not adopt that approach.

But several health advocates, including the AMA, insisted that the reform should be introduced. AMA President J. James Rohack, MD, sent a letter to President Obama and Congress, on January 6th, to repeal the Medicare physician payment formula.

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