A series of blows and counter-blows in the Senate killed all chances this week of a Medicare payment fix getting off the ground.
With less than three weeks left to block the mandated payment cut to physicians, many are concerned about Medicare patients' access to care should physicians drop from Medicare participation.
The clash came over bills proposed separately by Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa). According to Grassley, his bill (S.3118) was crafted to gain approval from the White House, while Baucus' bill, (S. 3101) the Medicare Improvements for Patients and Providers Act, ignored the administration's preferences for funding the physician payment fix.
The Senate voted Thursday against the Baucus bill and refused to vote on Grassley's.
Grassley said he is fed up with the wasted effort.
"The Democratic leaders' bill failed. They knew it would. Their political exercise wasted time and taxpayers' money," hey said. "Lawmakers need to work together to fix the Medicare physician payment problem, address Medicare Advantage problems and make sure we don't create new problems for Medicare's already troubled fiscal condition by overreaching."
"I hope that this failed vote will get us to the negotiating table," Grassley added.
Both bills proposed to halt a 10.6 percent Medicare physician pay cut slated for July 1. Grassley's bill would provide physicians with a 1.1 percent increase next year, while Baucus' proposal would provide a 0.5 percent increase.
The bills have many similarities, including requiring physicians to use electronic prescribing and boosting payments to rural physicians.
With a foundering Medicare budget, the argument came over how to fund the pay increase. Democrats want to slash payments to the Medicare HMO plan, Medicare Advantage, while Republicans see other areas to make cuts. President Bush has vowed to veto any bill that cuts Medicare Advantage funding.
On the Senate floor Thursday, Baucus said he wanted "to set the record straight," adding his bill "would not make drastic cuts to Medicare Advantage payments."
"Although I believe that there is justification for making significant reductions to the Medicare Advantage benchmarks, this bill would not do that," he said.
Though it failed to get enough Senate support, Baucus said his bill is "by far the best option for getting a Medicare bill done this year."
If you are a physician participating in Medicare, what will you do if a fix isn't passed by July 1? Email Senior Editor Diana Manos at diana.manos@medtechpublishing.com.