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Congress Goes on Break Without Blocking Medicare Cuts

by Barbara Kram, Editor | July 01, 2008

"Congress's inability to agree on legislation to stop the cut came despite votes by a lopsided majority of legislators for a bill, championed by ACP, which would have maintained current payment rates for the rest of this year and also replaced another scheduled cut in 2009 with a positive update," Dr. Harris told ACP members.

The bill, H.R. 6331, which passed the House of Representatives earlier this week with a huge bipartisan majority, would have continued current payment rates through the end of this year. It also would have provided a 1.1 percent update on January 1, 2009 in lieu of yet another scheduled Medicare payment cut of 5.4 percent. It made other ACP-supported improvements in Medicare payment and coverage policies: increased Medicare payments for internists' office visits, increased funding of a Medicare medical home demonstration project, expanded coverage of preventive services, and phased out of the higher co-payments for mental health benefits.

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"It is unfortunate that opposition from a minority of lawmakers and the White House to reducing overpayments to Medicare Advantage plans, and using these savings to improve traditional Medicare, was the basis for blocking action in the Senate." Dr. Harris pointed out. "Thousands of internists, including many primary care physicians in smaller practices, told their members of Congress that the 10.6 percent cut would have a devastating impact on their practices and their patients."

ACP already is mounting an aggressive campaign to reverse the cuts and provide a longer-term solution. "As Congress goes home for the Fourth of July break, we must insist that they declare their independence from Washington gridlock and immediately pass legislation, upon their return to Washington, to restore Medicare payments and assure positive updates going forward," Dr. Harris continued.

ACP will urge that Congress:

* Immediately upon return from the recess reverse the 10.6 percent cut and make it retroactive to July 1, so that no payments end up being cut as a result of Congress' inaction.
* Provide a positive payment update on January 1 in lieu of another scheduled 5.4 percent cut.
* Change the way Medicare applies budget neutrality adjustments for physician payments, resulting in an increase in the relative value units (and overall Medicare payments) for office visits and other evaluation and management services.
* Provide additional funding for the Medicare medical demonstration project.

Also, ACP will once again ask for the help of its members in informing Congress, patients, and the public about the unacceptable impact of the cut.