Reduced Medicare Rate Now In Effect; Congress Working on Resolution

June 24, 2010

Physician Medicare claims submitted for services provided in June are now being processed under the reduced payment rate on a rolling, first in/first out basis. This means that claims submitted earliest are now being paid at the reduced rate, while newer claims will continue to be held for a ten business day period until the president is able to sign legislation into law.

Last week the Senate passed a bill (S 3962) to block the 21 percent cut to fix to the sustainable growth rate (SGR) formula retroactively to June 1, 2010 and forward for six months. The measure is now being considered by the House of Representatives. The House is threatening not accept the Senate’s version because it doesn’t also extend unemployment benefits, so more wrangling is occurring. The cut will be in place until President Obama signs changes into law but everyone on Capitol Hill reports that a fix will happen and that it will be retroactive to June 1, 2010 – but those are just the promises of politicians.

Stay tuned to SCAI.org for updates on this issue.