CMS Issues Plan to Cut Medicare Fees, but Congress Likely to Intercede

CMS is going ahead with plans to slash Medicare physician reimbursements by 21.2 percent next year, following a requirement to put reimbursements in line with a sustainable growth rate formula, according to a final rule issued by CMS.

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Congress’ health reform legislation is likely to stop the fee cut for one more year, but last month the Senate shot down a proposal to remove the SGR for 10 years, while the House is still considering a similar proposal.

CMS’ final rule also removes physician-administered drugs from the annual payment update formula, which would raise the payment update in future years.

Read CMS’ final rule on reducing Medicare fees (pdf).

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