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Congress Takes Recess, 21% Medicare Cut Due June 15
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Medpagetoday.com REPORTS HERE that "The Senate left Friday on a long weekend, which means that no changes will be made to Medicare reimbursement rates until sometime next week at the earliest.  When senators returned to their home states for a Memorial Day break at the end of May, they left a major piece of unfinished business in the hopper: a bill to extend a number of expired federal programs.

The bill would also give physicians who treat Medicare patients a 19-month reprieve, during which their reimbursement rates would not be cut. The House passed the bill on May 28."

"Because the Senate failed to pass the House version of the bill, a 21% pay cut for doctors who treat Medicare patients technically went into effect June 1. However -- as it has done twice already this year -- the Centers for Medicare and Medicaid Services (CMS) announced that contractors would not process any claims for medical services delivered on the first 10 business days of the month.  That grace period ends on Monday. So starting June 15, CMS will begin processing claims for services provided on June 1 and later at the new, much lower rate."

"That is, unless the Senate passes a bill before then. Senate leaders had said the tax extenders bill -- with the 19-month "doc fix" -- would likely come up for a vote early next week, but with the Senate out until the middle of Monday afternoon, it now looks as if the vote won't come until next Tuesday, the 15th, at the earliest."

"As for whether CMS will extend the amount of time that claims are being held, an agency spokeswoman said she had no updated information on the subject."

In a related story the Associated Press REPORTS HERE that "President Barack Obama is asking Republican lawmakers to approve billions of dollars in new spending to avert a scheduled 21 percent cut in payments to doctors who treat Medicare patients.  If GOP senators don't allow the stalled proposal to pass, some doctors will stop treating Medicare recipients, Obama said in his weekly radio and Internet address Saturday."

"The Senate's top Republican, Mitch McConnell of Kentucky, said his party wants to avoid reducing physicians' fees, but do it without adding to the deficit — meaning spending cuts elsewhere."

"The doc fix is part of a large, Democratic-drafted bill that would extend several popular tax breaks while greatly increasing the tax that oil companies pay into a spill liability fund. Republican senators have focused their objections on the bill's tax increases, not the doctors' pay matter."

President Obama said: "I am committed to permanently reforming this Medicare formula in a way that balances fiscal responsibility with the responsibility we have to doctors and seniors."

"The president said he is 'absolutely willing to take the difficult steps necessary to lower the cost of Medicare and put our budget on a more fiscally sustainable path. But I'm not willing to do that by punishing hardworking physicians or the millions of Americans who count on Medicare. That's just wrong. And that's why in the short-term, Congress must act to prevent this pay cut to doctors'."

 
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U.S. government overpaid private insurance companies administering Medicare Advantage plans by as much as $3.1 billion in 2010, according to a new report from the Government Accountability Office (GAO).

About a quarter of all Medicare beneficiaries are enrolled in Medicare Advantage plans, and the Centers for Medicare and Medicaid Services (CMS) paid about $114 billion to the plans in 2010.


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