Healthcare Reform

House approves 2 bills addressing final healthcare reform bills; legislation returns to Senate
Late Sunday night, the House of Representatives passed two bills, culminating their effort to approve final healthcare reform legislation. Initially, the House passed H.R. 3590, the Patient Protection and Affordable Care Act, the bill approved by the Senate last December. This bill passed by a vote of 219 to 212. The president is expected sign H.R. 3590 into law shortly. Following that vote, the House then passed H.R. 4872, the Health Care and Education Affordability Reconciliation Act of 2010, by a vote of 220 to 211. This legislation modifies the Senate bill (H.R. 3590), and H.R. 4872 serves as the foundation of changes made by Congress to the current healthcare delivery, payment and insurance system. The bills fail to address the pending 21.3 percent cut to Medicare physician payment and the repeal of the sustainable growth rate (SGR) formula. Senate Republicans have stated their intention to offer numerous amendments and raise multiple points of order to the legislation. If the bill is changed in any way prior to Senate approval, it must return to the House for an additional vote before the president can sign it.

President Signs extension of payment freeze

The president signed H.R. 4691, the Temporary Extension Act of 2010 into law. This legislation includes a provision that freezes Medicare physician payments at their current level until March 31, 2010. The bill passed the Senate by a vote of 78 – 19. The House of Representatives had unanimously approved a companion bill by voice vote on Feb. 25.

The Senate is also currently debating H.R. 4213 the American Workers, State, and Business Relief Act of 2010. This legislation extends the freeze on Medicare physician payments until Sept. 30, 2010. It also provides an extension of the geographic practice cost index floor through Dec. 31, 2010. If approved by the Senate, the bill would have to be approved by the House before transmittal to the president.

2010 Medicare Physician Fee Schedule Announcement

Congress was unable to pass legislation that would repeal the 21% paycut going into effect on March 1, 2010. However, CMS believes Congress is working to avoid the negative update. Consequently, they have instructed its contactors to hold claims containing services paid under the MPFS for the first 10 business days of March. The holding of MPFS claims will only affect claims with dates of service March 1, 2010, and forward. This hold should have a minimum impact on provider cash flow because, under current law, clean electronic claims are not paid any sooner than 14 calendar days (29 for paper claims) after the date of receipt. Be on the alert for more information about the 2010 Medicare Physician Fee Schedule Update