Senate Bill Would Stop Reductions in Medicare Reimbursements to Physicians

A bill introduced in the Senate last week by Sen. Debbie Stabenow (D-Mich.) and supported by Senate Majority Leader Harry Reid (D-Nev.) would stop next year's reductions in Medicare reimbursement rates to physicians, according to a report by the Los Angeles Times.

The bill would maintain current Medicare payment levels, rather than moving forward with reimbursement cuts that would total approximately 21 percent next year. Currently, Medicare rates are to be cut when Medicare spending outpaces gross domestic product. However, Congress typically intervenes and passes legislation to ignore the cuts, which is why the reductions are so dramatic for 2010, according to the report.

The bill is likely an attempt by Democrats to maintain the support of the American Medical Association for a larger healthcare reform bill. By passing a separate bill to protect physician payments, Democrats can win the support of the AMA without adding additional costs to the more comprehensive reform bill.

Some Republicans and conservative Democrats, however, oppose the bill because it does not include a way for the government to fund the payment rates and would further add to the national deficit, according to the report.

If the Senate moves physician payments to a separate bill, the costs of the Senate and House reform bill would be relatively equal, according to the report.

The Senate is not expected to pass the bill as is, but Sen. Reid is currently working with Republicans to add amendments that would help pay for the bill, according to the report.

Read the Los Angeles Times' report on the Senate Medicare reimbursement bill.

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