Senate Finance Committee Working on Legislation to Stop Medicare Cuts
[Posted 04/28/08]

The U.S. Senate Finance Committee is currently developing legislation that would stop the 15 percent Medicare physician payment cuts scheduled over the next two years, and instead extend the current .5 percent increase through the end of 2008 and a give doctors a 1.1 percent pay raise in 2009.

President Bush continues to threaten to veto any Medicare physician payment package that is financed by equalizing Medicare Advantage health plan rates with physician fee-for-service rates. Currently, Medicare Advantage plans receive an average of 12 to 20 percent more than fee-for-service physicians for providing the same services to Medicare beneficiaries. Bringing plan rates in line with fee-for-service physician rates could save over $50 billion.

Because of the urgency of this legislation and the President’s veto threat, the Senate package will likely be financed by increasing the cuts in 2010. Senate leaders have said that they will work with the new Administration to fix the physician payment formula before then. 
The Senate Medicare package may also include demonstration projects on primary care medical homes, comparative effectiveness, and a potential mandate on e-prescribing.  The Senate is also considering a payment increase for primary care services. Senate leaders hope to vote on the package as early as mid-May.

Congressman Pete Stark, Chair of the House Ways and Means Subcommittee and one of the most powerful voices in Congress on Medicare policy, has also vowed that he will fight to include a geographic payment fix in the final Medicare payment package.
Stay tuned for more information.

Contact: Elizabeth McNeil, 916/444-5532 or emcneil@cmanet.org.