Senate Advances Delay of Medicare Cuts

Yesterday the Senate voted 60-34 to limit debate on a bill that extends a number of expiring programs, including a dealy of the 21% Medicare physician payment cut. No deal has been struck to expedite passage of the bill. Without such an agreement, Senate procedures do not allow for a final vote until later in the week.

CMS instructed its carriers to refrain from processing any claims for services provided on or after April 1 for 10 working days, to minimize administrative complications and other disruptions that would result from calculating payments that reflect a rate reduction that Congress is expected to overturn. That 10 day grace period expires on Wednesday, April 14. If Congress fails to pass legislation by close of business on Wednesday, Medicare law will require carriers to begin processing claims for services provided in April with the 21 percent cut. However, it is expected Congress will to pass legislation that retroactively restores payments to levels in place prior to April 1.