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Senate budget plan extends cap moratorium; House bill leaves Medicare unchanged

Rehab Regs, November 4, 2005

A one-year extension of the moratorium on implementation of the Medicare therapy cap is among the key provisions in a budget package passed by the Senate Finance Committee last week, reports PT Bulletin Online.

The Senate Budget Committee wrapped the recommendations into an omnibus year-end budget reconciliation bill, which the full Senate is expected to debate next week.

However, House committees did not include any Medicare policy changes in its budget legislation considered last week. The lack of any House position could complicate negotiations to resolve differences between House and Senate versions of the budget bill in the coming weeks.

The Finance Committee Medicare provisions also include a 1% increase in 2006 payments under the Medicare physician fee schedule and an extension of the 50% admissions criteria threshold for inpatient rehabilitation facilities (IRFs) through June 30, 2007, along with establishment of an advisory council to examine appropriate criteria for facilities to qualify as IRFs.

The budget bill establishes "pay-for-performance" standards in Medicare and includes provisions for the "Family Opportunity Act" (S 183) allowing families of children with disabilities with incomes up to 300% of the federal poverty level to "buy in" to Medicaid coverage. The bill also prohibits the establishment of new physician-owned specialty hospitals.

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