Bulletin: December 29, 2007

Congress Blocks Medicare Fee Cut

In another eleventh-hour action, Congress blocked a pending 10.1% cut in Medicare physician fees, and replaced it for six months with 0.5% increase. The bill extends the State Children’s Health Insurance Program (SCHIP) through March 2009, without adding benefits or beneficiaries. Congress also extended the Physician Quality Reporting Initiative (PQRI), which offers a 1.5% bonus for physicians who report certain performance data. Incentive payments for physicians in Medicare’s designated rural areas were also extended.

The 0.5% increase and the blocked pay cut are in effect from Jan. 1 to June 30, 2008. Without further congressional action during the first half of 2008, fees could be reduced effective July 1.

The Senate passed the measure unanimously, and the House approved it by a 411-3 margin. President Bush signed it into law on 12/29/07.