The latest news from Washington indicates the cut in Medicare reimbursement scheduled to go into effect on 1/1/06 may actually occur. The reduction of 4.3% is a hot topic amongst physicians, many of whom are claiming they will not continue to treat Medicare patients if the cuts go through.
Two of the key Senators on the Finance Committee (which has jurisdiction over CMS) have stated their desire to rescind the cuts. According to Congressional Quarterly, “Sen. Max Baucus (D-Mont.) said he and Senate Finance Committee Chair Chuck Grassley (R-Iowa) are “not going to let those cuts go into effect this year”.
The fate of the proposed fee reduction will not just affect Medicare. Many group health and HMO reimbursement arrangements as well as states’ workers compensation fee schedules are based on Medicare.
Yet more evidence that when CMS gets a chill, the rest of the health care payers catch a cold.
What does this mean for you?
Keep an eye on Congress’ actions, or lack thereof, on this reduction. Regardless of the action taken or not, it will affect health care payers’ bottom lines.
Sep
14
