Senate Passes A 6-Month Fix to SGR Issues

Senate passes another temporary fix to SGR and Medicare Pay extenders This week the Senate passed another temporary Medicare physician payment patch by a vote of 62-36. The bill prevents a cut to Medicare physician reimbursement and instead holds payment levels flat until October 1, 2010. The legislation extends several programs related to unemployment and COBRA benefits, as well as other tax provisions and federal programs. It also includes language to delay DME accreditation requirements for pharmacies until January 2011 and exempts pharmacies where DME is less than 5% of sales.

The following lists some of the key health extenders contained in the American Workers, State, and Business Relief Act of 2010, as passed by the Senate:

• Provides a nine month extension of the 65% COBRA premium assistance (through December 31, 2010) and extends the enhanced Medicaid FMAP increase from the American Recovery and Reinvestment Act through 2010.
• Provides a six month extension of the 0% update to the 2010 Medicare physician fee schedule (through September 30, 2010).
• The 1.0 floor for the work geographic practice cost index (GPCI) used to help calculate the Medicare physician fee schedule update would remain in effect through 2010 which is important for rural physicians.
• Extends the Medicare exceptions process for outpatient therapy services through December 31, 2010.
• Extends for one year (to January 1, 2011) the date by which certain pharmacies must be accredited as durable medical equipment (DME) suppliers and allows HHS to establish alternative quality standards and accreditation requirements for pharmacies.
• Extends the Medicare mental health services 5% add-on payment through December 31, 2010.