U.S. congressional leaders today reached a short-term budget agreement that includes a fix to the sustainable growth rate (SGR) formula that will prevent an across-the-board 27% cut to Medicare physician reimbursement on January 1, according to news reports.
The two-month deal also extends the current payroll tax rate at 4.2% rather than the normal 6.2%, and funds the Temporary Assistance for Needy Families program that provides welfare benefits to 4.6 million Americans, USA Today reported.
"Senator [Harry] Reid and I have reached an agreement that will ensure taxes do not increase for working families on January 1. ... We will ask the House and Senate to approve this agreement by unanimous consent before Christmas," House Speaker John Boehner said in a brief statement announcing the agreement. The impasse was brokered in part by Republican Senate Minority Leader Mitch McConnell (R-KY), who called on recalcitrant GOP House leaders to approve the short-term patch in exchange for Senate Democrats formally naming negotiators to finalize a full extension of the provisions through 2012 when Congress returns in January.
Most lawmakers in both parties agree in principle on a one-year benefits extension, but disagree on how to pay the approximate $200 billion cost of a longer-term extension, a battle that will play out in January.
