CMS to Temporarily Suspend Medicare Physician Payment Cut

The Associated Press reports in an article that the Centers for Medicare & Medicaid Services will hold physicians Medicare claims for services furnished on or after July 1, 2008. According to the article, the holding of claims is intended to temporarily delay the implementation of the 10.6 percent reduction in the Medicare payment rate for physician services until Congress returns from the July 4 recess and has time to address the scheduled payment cut. 

On June 24, 2006, the House of Representatives passed Medicare Improvements for Patients and Providers Act of 2008 (H.R.6331) in a 355-59 vote. As introduced, H.R.6331 would prevent the 10.6 percent reduction in the Medicare payment rate for physician services (which is scheduled to take effect on July 1, 2008), hold rates steady for the rest of 2008, and provide physicians with a 1.1 percent update for 2009.  However, on June 26, 2008, the Senate failed (in a 58-40 vote) to invoke cloture and proceed to a vote on H.R.6331.