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titlelines House Passes Medicare Physician Payment Reform Act
The U.S. House of Representatives has debated and passed the Medicare Physician Payment Reform Act, which would repeal the Sustainable Growth Rate (SGR) formula, provide an positive update in 2010 based on the Medicare Economic Index and replace the SGR formula with two separate spending targets beginning in 2011.
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On Thursday, November 19, 2009, the U.S House of Representatives passed the “Medicare Physician Payment Reform Act of 2009” (H.R. 3961) by a 243-283 vote to stop the scheduled the 21.2 percent cut in Medicare physician payment rates scheduled for January.

H.R. 3961 would:

  • Rebase the Medicare Sustainable Growth Rate (SGR) formula
  • Prevent the impending 21 percent pay cut for physicians
  • Provide an increase in 2010 based on the Medicare Economic Index (MEI)
  • Replace the SGR, starting in 2011, with two separate spending targets:
    • Evaluation and management services (including office visits, primary care services, emergency services, consultation and home services), primary care and preventive services
    • All other services directed at specialty care

The next step is the approval of this legislation by the Senate. However, the result of the Senate vote remains unclear. A similar bill, S. 1776, was defeated in October due to budget concerns. Majority Leader Harry Reid (D-NV) has promised to bring the physician payment bill back up after the Senate finishes work on a health care overhaul, which could mean sometime in 2010.

Discussions are also underway for considering attaching a temporary physician fix to legislation passed before the end of the year.

The Heart Rhythm Society’s Health Policy staff will continue to review the breaking news regarding health care reform and will provide detailed summaries to keep members informed. If you have any questions, please contact Isabelle Le Blanc, Coordinator, Legislative Affairs and Health Policy.

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