Last week, House Republicans introduced the Middle Class Tax Relief and Jobs Creation Act to address a payroll tax reduction for middle class families, and it also included a temporary fix to the sustainable growth rate for Medicare physician payment rates, which could result in a 27.4 percent cut to payments starting Jan. 1, 2012.
The bill would replace the 27.4 percent cut to Medicare physician payments with a 1 percent increase in each of the next two years, but hospital services would be cut to offset the consequential costs. These include reductions in hospital outpatient evaluation and management services by $6.8 billion and reductions in Medicare reimbursement for bad debt from 70 percent to 55 percent over three years, according to an AHA News Now report.
American Hospital Association President and CEO Rich Umbdenstock (pdf) said although the AHA supports fixing Medicare's "flawed physician payment system," the cuts in the bill "would be devastating to hospitals and the patients and communities they care for, especially at a time when hospitals are already absorbing cuts as a result of state reductions and recent legislative and regulatory changes, including the recently enacted 2 percent cut under sequestration."
The AHA urged Congress to oppose the bill, which would cut more than $17 billion in payments for hospital care.
The bill would replace the 27.4 percent cut to Medicare physician payments with a 1 percent increase in each of the next two years, but hospital services would be cut to offset the consequential costs. These include reductions in hospital outpatient evaluation and management services by $6.8 billion and reductions in Medicare reimbursement for bad debt from 70 percent to 55 percent over three years, according to an AHA News Now report.
American Hospital Association President and CEO Rich Umbdenstock (pdf) said although the AHA supports fixing Medicare's "flawed physician payment system," the cuts in the bill "would be devastating to hospitals and the patients and communities they care for, especially at a time when hospitals are already absorbing cuts as a result of state reductions and recent legislative and regulatory changes, including the recently enacted 2 percent cut under sequestration."
The AHA urged Congress to oppose the bill, which would cut more than $17 billion in payments for hospital care.
Related Articles on the Sustainable Growth Rate:
House Republicans Offer Bill That Includes Medicare "Doc Fix"
9% of Medical Groups Would Stop Treating Medicare Patients if Pay Cuts Go Through
CMS Releases Physician Fee Schedule, Includes 27.4% Cut to Physician Payments