Senate inaction on Medicare – 21 percent cut will take effect Monday

26 February 2010

Yesterday, the U.S. House of Representatives passed legislation that would extend current Medicare physician payment rates for another 30 days – once again postponing the 21.2 percent cut that was scheduled to take effect Jan. 1, 2010. The U.S. Senate, however, was unsuccessful in its attempts to pass the same bill by unanimous consent because Sen. Jim Bunning (R-KY) objected to the measure on the grounds that the costs of the bill were not offset. The Senate has now adjourned for the weekend, so the 21.2 percent Medicare physician payment cut will be effective on Monday, Mar. 1.

Action needed: MSV urges you to contact Sen. Mark Warner and Sen. Jim Webb to explain what these cuts will mean to your patients and practice.  Click here to send a message now.

Frequently asked questions regarding Monday's Medicare cut

How will this affect physician Medicare payments?
The Centers for Medicare & Medicaid Services (CMS) is working with Congress, health care providers, and the beneficiary community to avoid disruption in the delivery of health care services and payment of claims for physicians, non-physician practitioners, and other providers of services paid under the Medicare physician fee schedule. It has instructed its contractors to hold claims containing services paid under the Medicare Physician Fee Schedule (MPFS) for the first 10 business days of March. The holding of MPFS claims will only affect claims with dates of service beginning Mar. 1, 2010. This hold should have a minimum impact on provider cash flow because, under current law, clean electronic claims are not paid any sooner than 14 calendar days (29 for paper claims) after the date of receipt.  Whenever an extension does pass, it is expected to be retroactive back to Mar. 1, 2010.

Can I still change my Medicare participation status?
Due to the uncertainty surrounding the 2010 Medicare fee schedule, physicians have until Mar. 17 to change their Medicare participation or non-participation status in 2010. The AMA has prepared the guide Medicare Participation Options for Physicians (PDF) to help physicians make this decision.

What can I do?
A Medicare meltdown seems certain. We know that physicians are already having to make difficult decisions to keep their doors open. Senators Mark Warner and Jim Webb need to hear from you on this issue. MSV urges you to contact them about how this cut will impact your patients and your practice’s livelihood. Click here to send a message to Senators Warner and Webb.

Didn't you also contact me earlier this week about pending Medicaid payment cuts?
Yes. The Virginia General Assembly is in the process of developing the commonwealth's budget for fiscal years 2011-2012. State legislators have proposed cuts to physician Medicaid payments in order to balance the state budget. MSV has asked you to reach out to your delegate and state senator to explain how Medicaid payment cuts would hurt patients and impact your practice. If you have not already done so, you can click here to contact your state legislators about the proposed Medicaid cuts.