As announced last month, emergency room physicians are at risk to endure a substantial financial loss if the looming 27.4% Medicare cuts go into effect on January 1, 2012. However, Congress has made some progress to avoid those significant reimbursement cuts.
Congressional Action
Yesterday, December 13, the House of Representatives passed H.R. 3630, a bill that will avoid the Medicare pay cuts and instead raise physician reimbursement rates 1% in both 2012 and 2013. The two year period is meant to allow Congress the time to plan for a long-term solution for Medicare physician reimbursement.
While this news provides hope for next year’s Medicare reimbursement rates, the bill is now in the Senate for consideration. The bill also contains several other measures in addition to the physician reimbursements, so it is uncertain whether the bill will be passed intact. However, both party leaders have expressed the desire to act on the impending cuts and find a solution to physician reimbursement that does not include drastic cuts.
Although we expect government action and a resolution before January 1, 2012, it is possible that Congress will fail to act effectively by that date. In that case, Congress may enact legislation on this issue after the first of the year, but there could be significant administrative costs associated with delayed action.
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