May 27, 2010 — The dreaded 21.3% reduction in Medicare reimbursement for physicians will likely take effect June 1 as scheduled following the failure of House and Senate Democrats tonight to pass the necessary legislation to stop it.

The Memorial Day recess for Congress officially begins Monday, but lawmakers will start to leave the nation’s capital tomorrow. Democratic leaders who have tried to avert the massive Medicare pay cut say they simply have run out of time to cut a deal. They might have beat their deadline if it had not been for staunch opposition from both Republican and Democratic lawmakers who argued against the deficit spending involved in the legislation.

Anticipating that Congress might not act in time to avert the June 1 pay cut, the Centers for Medicare and Medicaid Services has instructed its carriers this week to hold payment on claims with June service dates for the first 10 business days of the month. That way, if Congress retroactively postpones the pay cut early next month, carriers would process the suspended claims at either the current reimbursement rate or any higher — and temporary — rate that lawmakers might approve.

Obama and Congress Throw Seniors Under the Bus. » Not Good News.

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