The U.S. Senate has passed the Bipartisan Budget Act of 2013, which includes a three-month reprieve of cuts to physician payment rates that would have gone into effect on January 1.
Following last week's vote in the House of Representatives that approved the legislation with a 332-94 majority, the bill passed in the Senate on December 18 with a vote of 64-36. It now heads to President Obama's desk for signature.
Cuts in Medicare payments are required under the sustainable growth rate (SGR) formula, which links Medicare reimbursement rates with increases in the country's gross domestic product. The SGR has mandated cuts every year since 2002, but each year Congress has passed legislation delaying its implementation. This latest patch will protect doctors from cuts of 24% from January 1 to March 31, 2014. Instead, physicians will see a 5% pay boost during those months.
The fix gives lawmakers more time to work out SGR repeal legislation in the coming months. On December 12, the Senate Finance Committee and the House Ways and Means Committee each approved legislation that would replace the formula; however, action by the full House and Senate on these bills won't happen until Congress resumes work in January.
