CMS Informs Hill of Plan to Reverse Physician Pay Cut

[CAL/AAEM News Service]

CMS Informs Hill of Plan to Reverse Physician Pay Cut
 
Source: AAEM (http://www.aaem.gov) 
Date: January 10, 2006  
  
 
In a letter dated January 6, the Centers for Medicare & Medicaid Services (CMS) informed
key federal lawmakers of how it would implement pending budget legislation that would
undo the physician pay cut that went into effect January 1.  CMS Director Herb Kuhn said
that, once the Deficit Reduction Act legislation (budget conciliation) has been enacted,
Medicare contractors will be instructed to automatically reprocess claims that were
already processed and that reflected the 4.4% cut in 2006 payments. The legislation will
maintain the 2005 level, which has come to be termed a "0% update" in physicians' pay.

CMS said the reprocessing will be phased in, depending on the volume of claims at each
contractor.  The agency will offer an additional enrollment period for doctors to
reconsider their Medicare participation decision in light of the anticipated better pay
situation. The original enrollment period ran from November 15 to December 31, 2005.  The
new enrollment period will run for an additional 45 days and will start soon after the
legislation is enacted.

For a copy of the letter to House Ways and Means Committee Chairman Bill Thomas (R-CA)
and Senate Finance Committee Chairman Charles E. Grassley (R-IA), visit:
http://capwiz.com/aaem/utr/1/LAUZFIZPEB/EJZVFIZPGD/578828176 

 


Cyrus Shahpar & Brian Potts 
Managing Editors, CAL/AAEM News Service
University of California, Irvine

The CAL/AAEM Archives are available at: http://maillists.uci.edu/mailman/public/calaaem/


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