Two-month tax-extenders package that prevents 27.4% reduction in Medicare physician payments signed into law

President Obama signed a 2-month bill into law in December that extends the payroll tax cut, unemployment benefits, and prevents the 27.4% cut in Medicare physician payments for 60 days. The House and Senate unanimously passed the bill (H.R. 3765) earlier. As part of the deal, the House and Senate agreed to appoint a conference committee to begin negotiations in January on a longer-term extension.
As a result of the 2-month reprieve, the 27.4% reduction to the Conversion Factor (CF) did not go into effect on January 1, 2012, and the Geographic Practice Cost Index (GPCI) floor will not be changed for 60 days. However, the remainder of the 2012 Medicare Physician Fee Schedule, including the Relative Value Units (RVUs), went into effect as scheduled on January 1, 2012. As the Centers for Medicare & Medicaid Services (CMS) implements the 2012 changes to the fee schedule, the current CF will be increased by the budget neutrality factor from the final rule (0.18%). Therefore, the CF will be $34.0376, effective January 1, 2012, for 60 days, a slight increase to the 2011 CF of $33.9764.
"ASCRS will continue to advocate for a permanent solution to the flawed Medicare physician payment system," said ASCRS Director of Government Relations Nancey McCann, who can be reached at nmccann@ascrs.org.