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Senate OKs Interim Medicare 'Doc Fix'

While final action remains to be taken, Friday, June 18 the Senate passed by unanimous consent paid-for legislation that would provide a 2.2 percent payment increase to Medicare physicians for six months, after nearly two weeks of trying to pass the provision as part of a larger package of extension measures. The $6.5 billion "doc fix" price tag is fully offset (paid-for) with two revenue-raising provisions. One would ban hospitals from charging Medicare for outpatient and inpatient services rendered within 72 hours of a hospital admission, estimated to save $4.2 billion. The other would raise $2.8 billion by allowing companies to spread out their pension fund obligations over a longer period, which is expected to raise taxable income at firms.

Democrats will keep trying to strike a deal on the larger tax bill, but aides said it was unclear when that would happen or whether the larger bill would come up again next week. Regardless, even with the Senate's action today, the pay cut will be in effect until the House returns next week and re-addresses the legislation. As such, the Centers for Medicare and Medicaid Services began processing backlogged Medicare claims today, paying physicians at the reduced rate for any claims for services after June 1, and will continue to do so until both the House and Senate ratify the same final language on the “doc fix.”