After a series of failed attempts to stall a 10.6 percent Medicare physician pay cut, Congress has approved a veto-proof fix. The new law will halt the July 1 pay cut for the rest of 2008 and provide a 1.1 percent pay increase in 2009.
The House passed the Medicare Improvements for Patients and Providers Act of 2008 by a wide margin in June with enough votes to overturn a veto long-threatened by President Bush. The Senate approved the bill Wednesday night with a single vote clearing it of the veto hurdle.
The deciding vote fell to Sen. Edward Kennedy (D-Mass.), who returned to the Capitol for the first time following treatment for brain cancer in June.
J. James Rohack, MD, president-elect of the American Medical Association, praised the Senate for moving forward to ensure physician participation in Medicare and access to care for seniors.
Rohack said "tens of thousands of patients and physicians" contacted their senators in the first week of July and urged them to vote for the bill.
The bill includes a measure to reward physicians for using electronic prescriptions, designed to accelerate the adoption of healthcare information technology.
The Pharmaceutical Care Management Association (PCMA) called the e-prescribing measure "a historic step," and "a major victory for America's seniors." E-prescribing can help to prevent medication errors and cut costs, a PCMA official said.
The bill also includes a measure to expand telehealth originating sites to include hospital-based renal dialysis centers, skilled nursing facilities and community mental health centers.
Sen. Charles Grassley (R-Iowa), ranking member of the Senate Finance Committee, called the bill a "take-it-or-leave-it" law, with no room for compromise. The bill was funded with cuts to Medicare's HMO plan, Medicare Advantage, an action firmly opposed by Republicans and President Bush. Grassley had hoped for an extension on the July 1 deadline in order to work out a compromise.
A report released Wednesday by the Congressional Budget Office estimates the bill will reduce federal spending by $12.5 billion from 2009-2013 and by $47.5 billion from 2009-2018 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.
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," Ignagni said.