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CMS releases fact sheet on Deficit Reduction Act

Ambulatory Surgery Reimbursement Update, January 10, 2006

The Centers for Medicare & Medicaid Services (CMS) recently issued a fact sheet detailing the pending budget package and 2006 Medicare physician reimbursement outlook.

The fact sheet clarifies a number of changes Congress considered in the Deficit Reduction Act of 2005 that have not yet taken effect because the House and Senate passed different versions of the legislation. Congress will likely revisit the bill when it reconvenes.

CMS outlined the following repurcussions of the bill not taking effect January 1:

• "As required under current law, claims for physicians' services on or after January 1 will be paid with the -4.4% reduction from 2005 levels. The bill would have kept physician payment rates from being reduced, and would have provided significant offsetting savings to limit any impact on beneficiary costs."
• "Specialty hospitals. Last summer, CMS temporarily suspended enrollment of new specialty hospitals while the agency reviewed its procedures for enrollment. At present, CMS plans to continue the suspension until February 15, 2006, after this review is completed. The bill calls for continuation of this suspension for up to six months pending development of a report to Congress containing a strategic plan for addressing specialty hospitals."

To view the fact sheet, click here: http://www.asahq.org/news/CMSfactsheet.pdf

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