A U.S. spending bill that prevents an across-the-board 27% cut to Medicare physician reimbursement passed the U.S. House of Representatives yesterday along partisan lines, 234-193, and was sent to the U.S. Senate for consideration. There, however, its chances of passage are nil due to several provisions opposed by majority Democrats.
Beginning January 1, 2012, the sustainable growth rate (SGR) formula that links Medicare reimbursement rates to increases in the gross domestic product mandates the 27.4% reimbursement cut unless Congress acts to prevent it before the end of the year. Both parties have vowed that a compromise bill will be signed by the end of the year, but political brinksmanship is putting the outcome in doubt.
Democrats oppose the House spending bill in its present form, calling a provision mandating immediate approval of the Keystone XL pipeline project unacceptable; the Obama administration said it is delaying its decision on the pipeline pending further environmental review that will be completed in 2013.
In addition, Democrats are looking to pay for an extension of the current payroll tax holiday by increasing taxes on wealthier Americans, a provision Republicans oppose. Senate Majority Leader Harry Reid (D-NV) has called the House bill "dead on arrival" in the Senate. The Obama administration is also insisting that Congress cannot go home on winter break until it passes an unencumbered spending bill that does not "break last summer's bipartisan agreement" on spending, according to the White House press office.
