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Special Alta News Update:

NEWSFLASH……….Congress Delays Medicare Cuts For Six Months;
Steeper Reductions Now Scheduled For July

On Saturday, Dec. 29, the president signed the Medicare, Medicaid and SCHIP Extension Act of 2007, which replaces the 10.1 percent reduction in Medicare Part B payments scheduled for 2008 with a six-month, 0.5 percent increase. Physicians will again face a reduction in Part B payments in July 2008 unless Congress once again intervenes.

In addition, the Centers for Medicare & Medicaid Services (CMS) announced that it will give physicians an additional 45 days to decide whether to participate in the Medicare program for 2008. Providers now have until Feb. 15, 2008, instead of Dec. 31, 2007.

Besides temporarily averting the cut, the Medicare, Medicaid and SCHIP Extension Act of 2007:

• Extends the SCHIP at current funding through March 31, 2009;
• Continues the Physician Quality Reporting Initiative for all of 2008 (successful participants will still earn a bonus payment of 1.5 percent of all covered professional services provided during the reporting period);
• Extends the 5 percent bonus payment to physician shortage areas through June 30;
• Extends a provision in the Balanced Budget Act of 1997 that allows independent laboratories to bill Medicare directly for the technical component of certain pathology services provided to hospitals through June 30;
• Extends the reasonable costs payments for certain clinical diagnostic laboratory tests in rural areas through June 30;

Before June 30, Congress is expected to develop a Medicare and Medicaid package that addresses longer-term physician payment rates and other issues excluded from this package, including proposed Medicaid regulations on teaching and public hospitals and the whole hospital exemption to the Stark law that would halt new limited-service, physician-owned hospitals.

Keep in mind that this is only a temporary fix.  If congress does not intervene as expected between now and June 30, Physicians will face a 10.1% cut again in the summer. Our best bet in trying to fight this reimbursement decrease is to join together as a profession and let our voices be heard by our local congress representative.  Find out who that is and contact them today!