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Medicaid News with
John Umphress

John Umphress has spent more than two decades researching and writing about public health policy and other topics within the public policy arena, covering advocacy organizations, state and local government agencies and the Texas Legislature.

Obama Signs Bill Delaying Medicare Payment Cuts

Posted Administrator Account on 4/18/2010

President Barack Obama has signed a measure that postpones until June 1 a 21% cut in Medicare payments to physicians.

The reductions, mandated under legislation passed a decade ago, have been regularly delayed by Congressional action.   The current cuts took effect April 1, but the Centers for Medicare and Medicaid Services (CMS) delayed paying claims while Congress debated the postponement.

The postponed payment cut was one element in a bill that extends unemployment benefits and COBRA health insurance cost subsidies for unemployed workers.  The delay was the third passed by Congress since December.

It is expected that Congress will pass yet another postponement in May, but physicians’ groups and others are advocating a permanent fix through alteration or elimination of the formula that mandates the reductions. 

"The Administration has repeatedly stated that the formula that determines what physicians and others are paid under the Medicare Physician Fee Schedule is broken and needs to be fixed,” stated John Blum, deputy administrator and director for CMS.

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