With just six working days until physicians face a 27.4 percent cut in their Medicare reimbursement rate, Congress left Washington without providing a solution. With no resolution in sight, Medicare reimbursement rates will be cut 27.4 percent on January 1, 2012. We know how frustrating and challenging this situation is for you, we are working as hard as we can on a daily basis to move Congress in the right direction. Earlier this week, the Centers for Medicare and Medicaid Services (CMS) issued a statement detailing how they will handle claims starting on January 1st. On Wednesday, the American College of Surgeons issued a statement detailing our frustration with Congress’ lack of attention to this critical issue for patients.
For those interested in the background as to how this all came about in the past few weeks, we have included the details at the end of this email.
The ACS remains committed to advocating for a full and comprehensive repeal of the sustainable growth rate formula used to determine Medicare physician payment and for an equitable, long-term solution to the problem. The ACS maintains that continued short-term fixes only exacerbate the problem and increase the long-term deficit. For more information on the College’s views on Medicare payment, CLICK HERE.
At this time, it is unclear when Congress will resolve its political differences. We will continue to stay in touch with you in the coming weeks.
Sincerely,
Patricia J. Numann, MD, FACS
President
J. David Richardson, MD, FACS
Chair, Board of Regents
Andrew L. Warshaw, MD, FACS
Chair, Health Policy and Advocacy Group
David B. Hoyt, MD, FACS
Executive Director
Background Information
Over the past two weeks, the deep partisan divide in Washington has been on display with both sides talking past each other and little effort to bridge the differences. The physician payment issue, along with the payroll tax cut and unemployment compensation, were used as political footballs between Democrats and Republicans as well as the House and Senate. First, the U.S. House of Representatives passed H.R. 3630, the Middle Class Tax Relief and Job Creation Act, which included a two-year short-term fix with a one percent increase in 2012 and another one percent increase in 2013. That two percent total increase would be nullified by the two percent cut that physicians are facing via sequestration beginning January 1, 2013, because the Joint Select Committee on Deficit Reduction—the congressional “Super Committee”—failed to craft a plan that would cut the nation’s debt by the required $1.2 trillion.
The American College of Surgeons (ACS) did not support or oppose the legislation as it simply exacerbated the problem on many levels. The House bill “kicked the can down the road,” creating a 37 percent cut in 2014 and increasing the cost to fully fix the problem to a staggering $370 billion. The more it costs to fully fix the problem, the less likely it is that Congress will ever be able to pass comprehensive repeal legislation. Congress could have fixed this problem six years ago for a total cost of $48 billion.
Senate Democrats and the White House immediately denounced the House bill as politically divisive because of the offsets used to pay for the legislation. Indeed, it was known before the House voted on the bill that it would not pass the Senate.
In response, Senate Democratic and Republican leadership spent most of last week in negotiations for a short-term legislative package including physician payment, the payroll tax cut and unemployment insurance. This past Saturday, the Senate passed a bill that would stop the 27.4 percent cut for 60 days. The negotiators attempted to reach a deal for one year, but the cost offsets again proved to be a major roadblock. Upon passage, the Senate immediately adjourned with no plans to return to Washington until January 24, 2012.
In the circular logic that only makes sense to Congress, the House was called back in to session; rejected the 60 day extension on Tuesday and passed a bill to appoint conferees that would work to bridge the gap between the House and Senate bills. The major problem – the Senate is no longer in Washington and will not appoint conferees.
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