MINNEAPOLIS, June 30, 2008—The Centers for Medicaid & Medicare Services has announced it will give Congress 10 more days, until July 10, to do something about the Medicare reimbursement mess.

The mess is the failure of the U.S. Senate to pass, by a single vote, the bill overwhelmingly passed by the House to eliminate the 10.6 percent cut in physician reimbursements. The cut was supposed to begin July 1; thanks to the action by CMS, it is postponed until July 10.

This actually amounts to just a three-day extension, because Congress has already adjourned for the Fourth of July recess, and will not reconvene until July 7.

The American Medical Association reminds physicians of several key facts as this three-day battle royal draws near:

• These cuts are not just about physicians. 
  They really will have an impact on patient care. Given the track record of payment updates over the past eight years, margins in physician offices are very small—too small to absorb another cut of nearly 11 percent. Many physicians are simply going to have to start turning away Medicare patients. In addition, these cuts affect thousands of other, non-physician health professionals who provide
  services to patients. 
• The problem is even worse in many rural states.
  Since the “floor” on geographic adjustments made to a portion of Medicare physician payments is also expiring on July 1. These states will experience additional payment cuts of between 1 and 3 percent. 
• These cuts are not just about Medicare, either. 
  Payments under TRICARE, which covers health care services for retired and active duty military personnel and their families, are tied directly to Medicare payment rates. So, access to care for these military service families is also being threatened. Some state Medicaid programs also tie their payment rates directly to Medicare.

The AMA has indicated that it does not favor the idea put forth that a 30-day extension of the current reimbursement agreement is in order.

"Right now, it is hard to imagine what can be accomplished by August 1 that could not have been accomplished in the six months leading up
to July 1," the AMA said in a statement.

"Congress has to return to Washington after the recess prepared to address this problem once and for all. It is time to make health care for seniors, the disabled and military families a real priority in Washington."