Medicare physician pay cut delayed 10 months

February 22, 2012

On Tuesday, February 14, 2012, a $20 billion deal on the sustainable growth rate (SGR) was struck, which would protect physicians from the 27.4 percent rate cut to Medicare fee-for-service reimbursement slated to go into effect on March 1, 2012.

Instead of basing the cut on military offset funds available with the drawdown of troops in Iraq and Afghanistan, funds would come from cuts to a prevention program ($5 billion) established under the Affordable Care Act, combined with reducing funding for hospitals with bad debt and reduced Hurricane Katrina Medicaid funding.

Physicians groups have criticized the deal, and the California Medical Association (CMA) was no exception.

“Congress had the opportunity to end the SGR and bring stability to Medicare. Instead they kicked the can down the road,” said James T. Hay, M.D., CMA President, “leaving seniors and member of the military to face serious access problems until after the general elections in the fall.”