Endcorine Insider
June 10, 2010

(See full issue)

The House passed a tax extenders bill, the “American Jobs and Closing Tax Loopholes Act of 2010” (HR 4213), on May 28, 2010 prior to adjourning for the Memorial Day recess; the Senate is expected to vote on the bill next week.  The bill includes provisions to update the flawed sustainable growth rate (SGR) and freeze the 21.2 percent payment cut that went into effect on June 1. The bill would provide a 2.2 percent update to physician payments for the rest of 2010 and a 1 percent increase for 2011. In 2012, the SGR formula would resume, with an estimated 33 percent payment cut taking effect that year. Congress has passed multiple short-term freezes to physician payment this year in the anticipation of a longer-term fix in the near future.

Because the Senate did not take up the bill before adjourning for the Memorial Day recess, CMS has announced that it will hold payments for 10 business days, allowing time for the Senate to act on the bill before the cuts are implemented.  However, with the projected timetable for final passage of the bill, it is likely that this hold on payments will expire before the bill is signed by the President.