Medicare Physician Pay Cut Further Delayed


In what is becoming a bimonthly exercise, Congress on November 29, 2010, passed legislation delaying until December 31, 2010, a 23% Medicare physician payment cut that was scheduled to take effect December 1, 2010. Had this Congressional Band-Aid not been applied, the 23% physician payment cuts would have started this week. President Obama is expected to sign the legislation.

Under current law, if no further action had been taken, the Medicare Physician Fee Schedule ("MPFS") on December 1, would be reduced by an average of 23% due to the impact of the sustainable growth rate formula ("SGR"). Under the SGR, cumulative Medicare spending for physician services is supposed to follow a target path equal to the rate of growth in physician costs, Medicare enrollment, and growth in real gross domestic product. Spending in excess ofthe SGR target in a given year results in automatic reductions inspending for physician services the following year. However, Congress has chosen to "defer" the SGR impact virtually each year since inception. Thus, cumulative deferred reductions amount to about a 23% cut.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jackson Walker | Attorney Advertising

Written by:


Jackson Walker on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.