Senate Passes Legislation to Halt Medicare Physician Payment Cuts

The Senate recently passed legislation to halt Medicare physician payment cuts that were scheduled to take effect on January 1. President Biden is expected to sign the bill into law. 

According to the American Medical Association (AMA), highlights of the physician payment provisions include:

• A delay in resuming the 2% Medicare sequester for three months (January 1 - March 31, 2022), followed by a reduction to 1% for three months (April 1 - June 30, 2022).
• A one-year increase in the Medicare Physician Fee Schedule of 3% (0.75% less than the conversion factor boost provided for 2021).
• A one-year delay in the cuts to the clinical lab fee schedule.
• A one year delay in the Medicare radiation oncology demonstration.

In addition, the bill will erase the 4% Medicare PAY-GO cut and prevent any additional PAY-GO cuts through 2022.

The AMA's statement from their president, Gerald E. Harmon, MD, is available here.