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Houses eliminates Medicare rate cut

Physician Practice Advisor, February 8, 2006

The House passed the Deficit Reduction Act for the second time last week, eliminating the 4.4% reduction in Medicare reimbursement rates that took effect January 1. Both the Senate and House passed the bill in December; however, Congress failed to sign the measure into law before going on break.

The bill passed 216 to 214, with all Democrats voting against the bill and all but 13 Republicans voting in favor, the New York Times reports. The Center for Medicare & Mecicaid services announced in January that claims processed during the temporary rate cut will be reprosessed to reflect the new rate.

In a press release, the American Medical Association (AMA) praised the payment freeze but urged Congress to rethink further payment cuts scheduled over the next six years. "The current payment formula is tied to the ups and downs of the U.S. economy-not the growing healthcare needs of America's seniors," AMA President J. Edward Hill said.

Click here to read the New York Times article.

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