MEDAC BILLING & COMPLIANCE ALERT
February 26, 2010

By: Bellinger P. Moody RHIA,CPC, CCP
Executive Vice President of Compliance

Failure to Act By Senate Means 21% Medicare Cut Effective March 1

According  the most recent MGMA Washington Connexion alert sent out at 2:53pm EST today -- the Senate failed to act on legislation  that would extend Medicare’s current physician payment rates and therapy cap exception process through March 31st due to Senator Jim Bunning’s, R-Ky., objections as to how to pay for the bill – which means that by law, the 21.2% payment cut will take effect March 1.  The senate will return on Tuesday and will most likely try to address the issue again.  However, regardless of whether congress acts, by law, Medicare carriers must hold all claims payments for at least 13 business days after receipt.  CMS states that it will also hold all processing of claims at the reduced rate for the first 10 business days of March – which will give the Senate a window to act.

In accordance with MGMA recommendations, you should contact your Senators and urge them to permanently address this issue by repealing the sustainable growth rate formula. You can contact your senators by calling the American Medical Association Grassroots Hotline, 800.833.6354

The information presented herein reflects general information that is current as of the date it is first published.  In light of changes that may occur in the health care regulatory and compliance environments, the author's presentation of this information and any general advice previously published might become outdated.  Please check with your individual legal and/or compliance advisor(s) prior to taking any significant actions based upon the information and advice presented.