The American Medical Association has released a statement opposing legislation that would enact yet another temporary patch that pushes back steep pay cuts for physicians under Medicare's sustainable growth rate.
The patch would be the latest in a series of short-term legislative solutions Congress has enacted every year since 2003 to stave off double-digit Medicare pay cuts for physicians under the SGR.
"Full repeal of the sustainable growth rate formula is the answer to strengthening the Medicare program, not another patch," AMA President Ardis Dee Hoven, MD, said in the statement. "We urge the House and the Senate to continue to pursue bipartisan negotiations on permanent SGR repeal legislation and for both chambers to oppose The Protecting Access to Medicare Act."
The House recently passed a bipartisan measure that would permanently solve the SGR issue by repealing the formula and replacing it with a payment system that incentivizes physicians to provide high-quality, low-cost care. However, the bill has not yet passed the Senate, and the White House has indicated President Barack Obama will veto the legislation if it reaches his desk because of an amendment, later added to the measure, that would delay the individual mandate.
The temporary patch legislation — which House lawmakers introduced earlier this week and are expected to vote on today — would protect physicians from pay cuts due to take effect April 1 under the SGR for one year, until the end of March 2015.
The bill would also delay the implementation of ICD-10 to Oct. 1, 2015. The American Health Information Management Association has called on its members to contact members of Congress and voice opposition to the bill. CMS has estimated a one-year delay of ICD-10 could cost between $1 billion and $6.6 billion, according to AHIMA.
Furthermore, the bill would delay enforcement of the controversial two-midnight rule by six months. The two-midnight rule was established by the 2014 Medicare inpatient prospective payment rule, and enforcement is currently scheduled to begin this October. According to the policy, inpatient admissions spanning at least two midnights qualify for Medicare Part A payments. Inpatient stays lasting fewer than two midnights must be treated and billed as outpatient services. CMS introduced the policy to better monitor Medicare reimbursement for short inpatient stays and ensure inpatient admissions are medically necessary.
Hospital leaders, physicians and healthcare groups have fiercely opposed the rule, saying it is unclear and undermines the medical judgment of physicians.
More Articles on the SGR:
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