ALERT

Senate fails to prevent July 1 Medicare cut

In a move that surprised even many U.S. Senate offices, Senate Majority Leader Harry Reid (D-Nev.) took to the Senate floor Thursday evening in an attempt to end debate on HR 6331, the Medicare reimbursement fix bill. Sixty votes are needed for “cloture” in order to move to a yes or no vote on passage; the final vote was 58-40, two votes shy. (Senator Reid changed his vote to “no” at the last instant, preserving his ability to bring the bill back for future floor action.) Physicians now face a 10.6 percent reimbursement cut beginning July 1.

Wisconsin Senators Herb Kohl and Russ Feingold both voted in support of ending debate—a vote the Society and numerous individual members had requested. Two senators were absent for the vote: Ted Kennedy (D-Mass.) and John McCain (R-Ariz.). View the roll call here. The bill previously sailed though the House of Representatives on Tuesday with a bipartisan 355-59 vote. Senate Republicans voting against the bill cited President Bush's veto threat (see yesterday's Medigram) and the bill's effect on Medicare Advantage programs as reasons for opposition.

AMA President Nancy Nielsen, MD, issued a scathing statement late this morning, citing physicians’ “outrage” at the Republican’s refusal to allow a vote for passage. “Today, thanks to some senators,” Dr. Nielsen said in the statement, “we stand at the brink of a Medicare meltdown.”

There are some reports that the Bush Administration will delay implementation of the reimbursement cut by “holding” Medicare claims for a number of days, hoping that an less-expensive solution can be reached soon after the Congress convenes the week of July 7, thus preventing the need for retroactive payments or for physicians refiling claims. Stay tuned to Medigram for more details as they become available.

A special thanks to all Society Key Contacts who responded to our calls for action and contacted their members of Congress, including Senators Kohl and Feingold. Click here to learn more about becoming a Key Contact.

For more information, contact Mark Grapentine.

Following the release of this Medigram alert, AMA's Director of Federation Relations Terri Marchiori released the following documents, along with the statement, "Thanks to all to all of you who provided so much help during our grassroots campaign this week. The pressure you generated was truly spectacular."

• A paper describing “Medicare Participation Options for Physicians.”
• A message to physicians about Medicare claims processing in July.
• Today’s statement from HHS Secretary Leavitt on the claims processing issue.
• A “Myth and Fact” sheet on the Medicare Advantage provisions included in HR 6331.