Tuesday, October 20, 2009

Bayh and Others Resist Reid-backed Bill to Protect Doctors' Medicare Fees

Senate Majority Leader Harry Reid was poised to push through a bill, separate from healthcare reform legislation, that would freeze a scheduled cut in the amount that doctors are paid for Medicare services for 10 years. These cuts are mandated by Medicare's 1997 funding formula, but have been resisted every year. This year's cut would have amounted to 20 percent. "Everyone understands we addressed these physician payment cuts every year. This is nothing different than we've done before," says. Sen Reid. The 10-year plan represents a semi-permanent fix to stabilize medicare reimbursement.

The $247 billion cost of doing so, however, is not currently offset by tax increases or spending cuts. The brakes were put on by five Democratic senators: Evan Bayh, Kent Conrad (N.D.), Russ Feingold (Wis.), Tom Carper (Del.) and Claire McCaskill (Mo.) who said they would not vote for the bill. It is considered important for for passage of a reform bill and for the AMA's support of health care reform. Sen. Bayh had this to say about it:
“It’s not fiscally responsible. . . . I could not vote for a bill that raises the deficit by $240 billion, not at a time when we are already hemorrhaging red ink. The physicians’ issue needs to be addressed, but not in a way that increases the deficit.”
You can read more about the Medicare fee freeze from The Hill here and from NPR here.

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