"Doc Fix" Still in Limbo

December 22, 2011

Doctors are still at risk of a reduction in Medicare payments due to gridlock over a payroll tax extension that is stuck in the House of Representatives.

The bill, which extends for two months a reduction in payroll taxes, also contains a two-month delay in the activation of cut in Medicare payments based on the sustainable growth rate (SGR) formula.

If Congress fails to act by the end of the year, doctors will see a 27 percent decrease in Medicare payments beginning January 1.

The Senate, after reaching a compromise with House leaders, passed the measure over the weekend with support from Republican members.   But feeling pressure from his members in the House, Speaker John Boehner has refused to bring it up for a vote, instead asking the Senate for a conference committee.

House Majority Leader Harry Reid rejected that proposal, responding that the House and Senate had a deal before his chamber's vote.

If Congress does not act, the Center for Medicare and Medicaid Services has indicated that it will delay processing of physician payments in the hope that a resolution can be reached early in the new year.