Practice Economics

Senate passes SGR and budget bill; White House next


 

The Senate has passed a budget package that includes a 3-month delay in physician pay cuts mandated by the Medicare Sustainable Growth Rate formula but also extends other overall Medicare budget cuts for 2 years.

The Senate voted 64-36 on Dec. 18 to approve the Bipartisan Budget Act of 2013 crafted by Senate Budget Committee Chairman Patty Murray (D-Wash.) and House Budget Committee Chairman Paul Ryan (R-Wisc.). Nine Republican senators voted in favor of the deal, joining 55 Democrats.

The 3-month reprieve from the SGR cuts was added to the budget deal by the House before it voted to approve the package on Dec. 12.

Sen. Patty Murray

Now, if President Obama signs the budget bill, which is expected, physicians will see 0.5% a month pay increase through Mar. 31.

The Congressional Budget Office estimated that the temporary fix would cost $3.3 billion in 2014 and a total of $7.3 billion through 2023. It would be paid for by cutting Medicaid payments for hospital-based charity care and to long-term care hospitals.

The bill also would extend the 2% sequestration cut to Medicare payments by 2 years, to 2023.

The House has recessed and is not due back until Jan. 7. The Senate has not set its adjournment date yet, but is expected to reconvene on Jan. 6.

Congress is expected to start consideration again of a permanent replacement for the SGR when it returns.

aault@frontlinemedcom.com

On Twitter @aliciaault

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