June 27, 2008
The U.S. Senate failed yesterday, June 26, to pass the Medicare bill that would have averted the July 1st automatic 10.6 percent cut in Medicare payments to physicians.
This means that the cuts will go into effect on July 1st as scheduled. It is widely expected that the Senate will take up the legislation again soon after its return from the July 4th recess. The pressure on the Senate to reverse the payment cut is enormous.
The House of Representatives voted 355-59 in favor of H.R. 6331, the Medicare Improvements for Patients and Providers Act of 2008.
Republicans in the House supported the legislation because they were “worried that opposing the bill would be characterized as a vote against physicians and Medicare beneficiaries, both powerful constituencies.” (Wall Street Journal 6/27, page A3.) Although 40 Senators voted to block the bill, we can anticipate that several more weeks of intense lobbying will weaken some of their resolve.
The differences between the two parties lie in how to pay for the bill, not in the principle that the 10.6% cut must be stopped. Democrats would fund physician payment through cuts in payments to the private health insurers such as United Health Group and Wellpoint that have benefited from offering “Medicare Advantage” plans to senior citizens. President Bush remains deeply committed to the private-sector alternative to Medicare fee-for-service health coverage.
Other constituencies pushing for the bill include rural hospitals and ambulance providers, as well as many pharmacists, because the bill would have increased funding for their services as well.
On behalf of all physicians and their patients, ABC hopes that Congress will quickly pass corrective legislation upon its return from the Fourth of July recess—and that the President will sign the bill. We further hope that the House bill provisions ending the discriminatory treatment of teaching anesthesiologists are part of the final package. We will work with our clients to manage cash flow and accounting and hope that the correction is made retroactive. We urge you to continue your own lobbying efforts as directed by ASA.
