Bill Would Enact Pay Increase for Physicians, Instead of 10.6 Percent Decrease

Sen. Max Baucus (D-N.D.) introduced on Friday a Medicare package bill that would raise physician payments 1.1 percent instead of slashing them 10.6 percent, as had been slated for next month.

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The bill proposes to take money from private insurers to fulfill the payment increase.

Physician Hospitals of America report that, unlike other healthcare package bills proposed recently (such as the children’s health insurance and mental health parity bills), this bill does not contain any provisions regarding physician-ownership of specialty hospitals.

If passed, the increase would take effect in 2009; the cut had been scheduled for July 1 as part of a budget-balancing effort. Congress has over the past several years generally made last-minute interventions to prevent such cuts in physician Medicare payments. The Associated Press reports that the proposed 1.1 percent reimbursement increase would cost about $9 billion over five years.

Download a summary version (PDF) and full version (PDF) of the bill.

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