Bush administration freezes Medicare physician pay cut

In the latest action to avert the scheduled 10.6-percent cut in physician Medicare reimbursements, the Bush administration announced that it will freeze all payments to physicians to give Congress time to pass a solution. The Centers for Medicare and Medicaid Services will hold doctors’ Medicare claims for services performed on or after July 1 until at least July 15, according to a spokesman from the Department the Health and Human Services.

“The Bush administration is adding insult to injury. Freezing Medicare payments could create some serious cash flow problems for family physicians,” says TAFP CEO/EVP Tom Banning. “Our seniors won’t stop getting sick, but because of Congress’ failure to act they may find access to a physician greatly limited.”

Congress will pick up the issue the week of July 7, after legislators return from the July 4 holiday. Over the past few weeks, there has been steady back-and-forth action on Medicare as the House and the Senate try to reach a bipartisan compromise.

Early last week, the House of Representatives overwhelmingly passed House Resolution 6331, the “Medicare Improvements for Patients and Providers Act of 2008.” Thirteen out of 59 nay votes came from Texas representatives. (See the final vote tally for HR 6331 by Texas representatives below.) The resolution, introduced by Ways and Means Committee Chair Charles Rangel, D-NY, and Energy and Commerce Committee Chair John Dingell, D-MI, proposed to avert the cut and extend the current 0.5-percent update through the end of the year, also providing a 1.1-percent increase in 2009.

When HR 6331 reached the Senate, it fell one vote short of the 60 votes needed to be brought up for debate. Both Texas senators voted against the bill. In a statement from Sen. John Cornyn, R-Texas, he said the legislation was a “partisan proposal” brought by Democrats who were working to advance “their own political ambitions.”

In mid-June, the Senate failed to receive enough votes to begin debate on a bill by Sen. Max Baucus, D-Mont., which closely resembles HR 6331. Senate Republicans objected to the Baucus bill because it would have provided a small increase to physician payments by decreasing federal payments to Medicare Advantage plans.

After the blocked Senate legislation, AAFP President Jim King, M.D., of Selmer, Tenn., released a statement in which he said that a payment cut would throw patients into confusion and doctors into financial uncertainty. “We urge both Republicans and Democrats to immediately negotiate compromise legislation that meets the needs of both patients and the physicians who care for them,” he said in the statement. “Only by acting quickly can Congress and the [Bush] administration ensure the stability of a health care program on which millions of elderly and disabled patients depend.”

Sen. Charles Grassley, R-Iowa, also introduced a bill similar to the Baucus bill, which would provide an 18-month payment update and maintain current payment levels for the remainder of the year with a 1.1-percent increase in 2009. Instead of decreasing payments to Medicare Advantage plants, Grassley’s proposal would lower the cost of the payment update by leaving out provisions to assist lower-income Medicare patients.

Until Congress can reach a compromise, physicians can still voice their concerns through grassroots pressure. AAFP encourages physicians go to AAFP’s Speak Out for more information on how to get involved.

Related links:
Read statements from AAFP President Jim King, M.D.: Failure to Bring Medicare Bill to Senate Floor is a 'Serious Blow' and Medicare Legislation Helps Avert Potentially Devastating Pay Cut.

Read the Medicare Payment Talking Points document, which outlines the three arguments used by Senators who voted against HR 6331. These talking points can be used in interactions with the media or other advocacy efforts. Also, consider using the sample letter to the editor, developed by AAFP’s Leslie Champlin, to send to your local media. The letter contains a quote from AAFP President Jim King, M.D., and other statistics on the Medicare pay cut.

Final vote results for HR 6331—Texas delegation
June 24, 2008

Yeas

Rep. Ted Poe
Rep. Ralph Hall
Rep. Al Green
Rep. Michael McCaul
Rep. Ruben Hinojosa
Rep. Chet Edwards
Rep. Sheila Jackson Lee
Rep. Charles Gonzalez
Rep. Lamar Smith
Rep. Nicholas Lampson
Rep. Ciro Rodriguez
Rep. Lloyd Doggett
Rep. Michael Burgess
Rep. Solomon Ortiz
Rep. Henry Cuellar
Rep. Gene Green
Rep. Eddie Bernice Johnson

Nays

Rep. Joe Barton
Rep. Kevin Brady
Rep. John Carter
Rep. Mike Conaway
Rep. John Culberson
Rep. Kay Granger
Rep. Jeb Hensarling
Rep. Sam Johnson
Rep. Kenny Marchant
Rep. Randy Neugebauer
Rep. Ron Paul
Rep. Pete Sessions
Rep. William Thornberry

Not voting

Rep. Louie Gohmert
Rep. Silvestre Reyes