Time is running out for the US Senate to address reductions in Medicare payments to physicians. 

The 21 percent cut in payment, factored under a sustainable growth rate formula, took effect June 1. However, CMS has instructed contractors to not process claims submitted during the first 10 business days of June. 

Congress has acted several times in the past six months to block the reduction in payments, with the latest action by the US House on May 28. The delay in processing claims is the second by CMS this year. 

The bill under consideration would put off reductions through 2012, a year longer than that specified in the House-passed version.

In absence of quick action by the Senate, claims for Medicare services rendered by physicians on or after June 1 will be processed beginning June 15. Delays in Senate action have been due to the fiscal impact of the bill, which includes enhanced Medicaid funds for states and COBRA payment assistance for unemployed workers.   

In his weekly radio address, President Obama urged action by the Senate to pass the legislation that contains the delay in the payment reduction. Action by the Senate, however, would probably not come before the June 15 deadline for processing claims.    

The American Medical Association and other physicians’ groups, while supporting a delay in the cuts, would like to see a more permanent solution to adjustments in Medicare payments. 

"The impact on seniors is clear; the Senate's failure to act will force physicians to limit the number of Medicare patients they can treat," AMA President J. James Rohack, M.D.said in a statement.