Congress expected to intervene, as before

“Without congressional action, physician payments will be slashed 25% with the first cut of 23% beginning Dec. 1,” Cecil Wilson, president of the American Medical Association, said in a prepared statement.

CMS issued a final rule on Nov. 3, and announced that payment rates were scheduled to be reduced under Medicare’s sustainable growth rate (SGR) formula. The formula was first used in 2003 and is based on gross domestic product. Since its first use, it has stipulated significant reduction in payment rates for physicians providing care to Medicare beneficiaries. Nevertheless, Congress has routinely side-stepped these reductions, but only on a yearly basis. Both CMS and Congress agree that a long-term solution is needed.

The final rule also implements other health reform provisions, such as:

• expanding preventive services for Medicare beneficiaries,
• improving payments for primary care services, and
• promoting access to health care services in rural areas.

To download the final rule, visit this page.