WASHINGTON – Physicians can rest easy for at least another year.
On July 15, Congress approved the Medicare Improvements for Patients and Providers Act of 2008 (H.R. 6331), passed July 9, with enough votes to override President Bush's veto, cast earlier that day.
The new law will reverse a 10.6 Medicare pay cut that had been scheduled for July 1. The bill stalls the pay cuts for 18 months and provides a 1.1 percent increase for 2009.
Almost a dozen Republican senators who had opposed the bill changed their votes to help squelch the veto. Republicans had opposed the bill because it would be funded with cuts to Medicare Advantage, while Democrats said the Republican opposition catered to big health plan interests.
The new law includes incentives for physicians who adopt healthcare IT and use electronic prescriptions, a popular measure on both sides of the aisle to prevent medication errors and cut healthcare costs. In addition, it expands the list of telehealth originating sites to include hospital-based renal dialysis centers, skilled nursing facilities and community mental health centers.
Bruce Roberts, CEO of the National Community Pharmacists Association, with a membership of 23,000, said the new law “will guarantee community pharmacies the ability to help millions of patients and to compete on a level playing field.”
The American Medical Association had launched a grass-roots lobbying effort in July with patients and physicians for passage of the bill. According to AMA President Nancy Nielsen, MD, the 18-month reprieve will give the government time to replace the flawed Medicare physician payment formula.
“It has been a long and winding road, but today we celebrate that Congress heard the voices of millions of patients and physicians and voted to override President Bush’s veto and protect the health of America,” Nielsen said. “We thank the bipartisan majority in Congress who voted to put patients first.”
Rep. John D. Dingell (D-Mich), chairman of the Committee on Energy and Commerce and co-author of the law, criticized the veto.
“If we fail to override this veto, we will miss out on an opportunity to begin addressing the most egregious abuses made by private health plans operating in Medicare,” he warned Congress.
Sen. Charles Grassley (R-Iowa), ranking member of the Senate Finance Committee, said the bill is “riddled with problems and missed opportunities,” including assistance for “tweener hospitals” and some value-based measures for improving costs and quality of care. He said he isn’t opposed to “some reforms” to the Medicare Advantage program and is disappointed that bipartisan efforts at compromise were cut short by Democrats.
A report released July 9 by the Congressional Budget Office estimates the law will reduce federal spending by $12.5 billion through 2013 and by $47.5 billion through 2018 by making changes to Medicare Advantage. The changes, however, would decrease enrollment in the program by about 2.3 million beneficiaries over the next five years, the report said.
Karen Ignagni, president and CEO of America's Health Insurance Plans, said cuts to Medicare Advantage could have “a devastating impact” on seniors who rely on the extra benefits and lower out-of-pocket costs the plans provide. “While it is important that Congress address the physician payment issue, they shouldn’t take away seniors’ healthcare choices in the process,” she said.
Will the 1.1 percent pay increase be enough to keep physicians participating in Medicare? E-mail your comments to Senior Editor Diana Manos at diana.manos@ medtech publishing .com.