February 1, 2006
HOUSE PASSES BUDGET PACKAGE CONTAINING ONE-YEAR MEDICARE
PHYSICIAN FEE FIX
Immediate Funding of $1.5 Billion -- $7.3 billion over
five-years -- Nullifies SGR-mandated Reduction
Today, by a vote of 216 to 214 the U.S. House of Representatives
agreed to House Resolution (H. Res.) 653, a resolution
effectively passing, S.1932, the Deficit Reduction Act
of 2005 -- an omnibus budget package containing provisions
preventing Medicare physician payment cuts of 4.4% for
2006.
With the passage of S.1932 and the anticipated signing
of the measure by the President, Congress has, for a
forth year, nullified Medicare physician payment reductions
mandated by the flawed Sustainable Growth Rate (SGR)
update formula.
Thousands of ASA members contacted their
Member of Congress as part of medicine’s grassroots
campaign in support of the fee fix.
Today’s action was required despite the House of
Representatives having previously passed S. 1932 by
a vote of 212-206 on December 19th. Soon after its vote,
the House adjourned for the end of the year recess
with the expectation that the Senate would also pass
S.1932. However before the Senate could pass the package
on December 21st, Senator Kent Conrad (D-ND), as part
of an effort to defeat the legislation, was successful
in using Senate procedural rules to revise the package
slightly. The Senate ultimately passed the package but
the last minute revisions to the package meant that the
Senate and House-passed versions were no longer the same.
Because both Houses of Congress must agree to the same
package prior to a bill being eligible for Presidential
signature, today’s
second House vote on the package was necessary.
S.1932 reduces federal government spending by nearly
$40 billion from 2006 to 2010. As part of the reductions,
Medicare and Medicaid spending is reduced $11 billion
for the five-year period. However, as a spending provision,
the authors of the final package responded to lobbying
by the ASA, the AMA and other physician groups by providing
an immediate $1.5 billion ($7.3 billion over five-years)
in new funding to maintain 2005 physician payments
at their current level through the end of 2006.
To address Medicare physician payments beyond 2006,
the budget package contains provision directing the
Medicare Payment Advisory Commission (MEDPAC), the
Congressional advisory commission, to develop a proposal
for a new formula for updating physician fees.
ASA has long supported and will continue to advocate
repeal of the sustainable growth rate (SGR) formula
that has proven unworkable and unfair in limiting Medicare
Part B expenditures. In its place, ASA supports the
update mechanism recommended by MEDPAC, by which reimbursement
would be permitted to rise consistent with changes
in the cost of delivery of care, for example, as measured
by a Medicare Economic Index (MEI) or other payment
system that accurately reflects increases in medical
practice costs.
Throughout 2006, ASA members should be prepared for
additional “Action Alerts” and “Calls-to-Action” as
medicine works to halt the SGR-generated 4.5% physician
fee reductions now projected for 2007.
For Vote Information click here http://clerk.house.gov/evs/2006/roll004.xml
CMS Information on Claims 