AMA Morning Rounds: Several medical groups say new financial regulations aimed at Wall Street are too broad

The Hill (5/3, Brush) "On the Money" blog reported that several "of the nation's largest healthcare associations," including the American Medical Association, "are warning Congress that they would fall under sweeping new financial regulations aimed at Wall Street." The association, in a letter, "said the scope and reach of a new consumer financial protection office are too broad and that they would face new regulations designed for banks and other financial companies."

Medicare Cuts Delayed Until June 1

Last night, the President signed H.R. 4851, the Continuing Extension Act of 2010, into law, reinstating Medicare physician payments to where they were on March 31 and again postponing the 21.3 percent cut that was supposed to take effect in 2010. This most recent extension of 2009 payment rates will continue through the end of May, and will be applied retroactively to all physician services provided to Medicare patients in April.

Yesterday, the hold on processing April claims that the CMS had placed to avoid implementing the payment cut technically expired. However, with Congressional action so imminent, do not believe many claims were actually processed at the lower payment rates. However, CMS indicated that any claims paid that reflected the 21.3 percent cut will be reprocessed automatically without any action required from physicians.

Healthcare reform passes House 219-212

Last night the House passed the Senate-approved healthcare reform bill 219-212. After passing the bill, the House proceeded to approve "key changes" to it, "part of a prearranged agreement to guarantee passage of the historic legislation. The changes passed by a 220-211 vote. That bill now goes to the Senate for final approval, where it only requires a simple majority to pass. Passage in the Senate and signing by President Obama is expected to occur quickly in the next few days.

Senate Fails to Prevent SGR Cuts

Yesterday, the House passed HR 4691, legislation that extends a number of expiring programs for 30 days, including current Medicare physician payment rates, which would once again postpone the 21% cut that was scheduled to take effect this year. The Senate attempted unsuccessfully on several occasions last night and this morning to pass the same bill by unanimous consent, but objections were raised by Senator Jim Bunning (R-KY), on the basis that $10 billion cost of the program extensions was not offset. The Senate has now adjourned for the weekend, so the 21% Medicare physician payment cut will be effective on Monday, March 1.


The Centers for Medicare and Medicaid Services (CMS) informed the AMA that they are notifying their contractors to hold Medicare physician claims for 10 business days, effective Monday. The agency will also be sending out a similar message on its various list serves this afternoon to physicians, and contractors will be instructed to disseminate this information as well.

Express your outrage to Congress about its terrible mismanagement of the Medicare and TRICARE programs, which are so important to the health and well-being of Americans who have served our nation so long and so well. Tell them:

• Congress had more than a year to repeal the Medicare payment formula and ensure the security and stability of the program. Instead, it has abandoned patients who rely on Medicare and TRICARE for their health care.
• Parliamentary procedures offer no excuse for the harm they are causing these programs.
• Stop playing games with patients and the physicians; repeal the sustainable growth rate (SGR) formula once and for all.

Use the AMA's toll-free grassroots hotline at (800) 833-6354 or write them an e-mail.

New Jersey Legislature Fixes Nerve Conduction Statute

On January 16, one of his last days in office, Governor Jon Corzine signed into law a bill correcting an error that restricted both performance and interpretation of NCSs to physicians and certain other health care professionals. The law took effect immediately. It is now again be statutorily legal for physicians to supervise the performance of NCSs by technologists.

It was never the legislature's intent to prohibit this practice. The inadvertent addition of a single word to a 2005 law during committee revision changed the meaning to require both interpretation and performance of NCSs by physicians and certain other health care professionals. That problem is now fixed.