House averts massive Medicare cuts to hospitals and physicians
The AMA and others had urged Congress to act to avoid cuts of 9.7% from taking effect Jan. 1.
Photo: Michael Duva/Getty Images
Medicare payment cuts that would have affected reimbursement to hospitals and physicians have again been averted by a last-minute deal in the House.
On Tuesday, the House passed the Protecting Medicare & American Farmers from Sequester Cuts Act. The bill avoids a 4% statutory cut from the pay-as-you-go (PAYGO) provision, extends the moratorium on the Medicare payment sequester and mitigates the 3.75% cut in Medicare physician payments in 2022.
The bill reduces the 2% Medicare sequester to 1% from April through June.
Ways and Means Chairman Richard E. Neal, D-MA, said in a statement: "Our nation's healthcare providers have had their limits tested time and time again throughout the pandemic, and with this legislation, we will save them from harmful cuts to the Medicare payments on which they rely."
WHY THIS MATTERS
Providers were pleased.
Rick Pollack, president and CEO of the American Hospital Association, said, "The AHA is pleased that the House has recognized that now is not the time to make cuts to hospitals and physicians under the Medicare program. By eliminating a 2% Medicare reduction until April 2022 and stopping the 4% Statutory Pay-As-You-Go (PAYGO) Medicare cuts from taking effect in early 2022, providers on the front lines of the fight against COVID-19 will not face additional imminent financial jeopardy as they continue to care for patients and communities."
Association of American Medical Colleges President and CEO Dr. David J. Skorton and Chief Public Policy Officer Karen Fisher, said: "The AAMC appreciates the efforts of the bipartisan group of congressional leaders to draft legislation that would address the upcoming devastating Medicare cuts to hospitals and providers. Alleviating these devastating cuts is crucial to ensuring that the nation's teaching hospitals and faculty physicians can continue fighting the COVID-19 pandemic, protecting access to care for the patients and communities they serve, and meeting the nation's health needs. We also appreciate the lowering of reductions to payments to physicians, delay of the harmful cuts to clinical laboratories and a delay in the implementation of the Radiation Oncology model that are included in the bill."
The bill now goes to the Senate.
THE LARGER TREND
The AMA and others had urged Congress to act to avoid cuts of 9.7% from taking effect Jan. 1.
In April, the House also avoided a 2% cut in Medicare payments triggered by federal budget sequestration by eliminating the cut until the end of 2021.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
