CMS Delays Medicare Physician Pay Cut for 10 Days

As of today, Medicare physicians were to begin facing a 21.2% pay cut - but CMS has stepped in and ordered contractors to hold claims for 10 days in the hopes that a solution can be reached in that time.

CMS was compelled to action after the Senate failed to pass legislation that would have extended a number of expiring unemployment benefits and delayed the Medicare pay cut. Last Thursday, the House passed a bill that would delay the pay cut until March 28.

If Congress and the White House are able to enact a delay of the pay cut by the end of the 10-day period and make it retroactive to March 1, physicians shouldn't see any checks come back with the 21.2% cut applied.

The bill's passing is currently being held up by Sen. Jim Bunning (R-Kentucky), who objects to it on the basis that its total cost (about $10 billion) would add to the federal deficit. Roughly $1 billion of the total cost would go toward the physicians' pay freeze. If Bunning doesn't change his vote, the bill will need to go through the regular order, a process that takes more time than a unanimous consent approval.

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