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Imminent Withholding of Medicare Physician Payments Appears Likely

December 22, 2011 | No Comments
Posted by Frank Ciesla

As of today, there still has not been a resolution of the threatened reductions to the Medicare payment rate which are scheduled to go into effect ten (10) days from now .  As you are aware, the Medicare Sustainable Growth Rate will require reducing payments by over 27% as of January 1, 2012.

While the news seems to be focused on the deadlock in regard to the payroll tax cut and extension of unemployment benefits, the issue regarding physician compensation is as vital, not only to the physicians, but to the Medicare population, as either of the other two issues.  The pending Republican proposal for resolving the physician payment issue is focused on reducing payment to other healthcare providers.  This appears to be unacceptable to the Democratic contingent in both the House and the Senate.

As of this point in time, Medicare will withhold all Medicare physician payments for services rendered during the first ten (10) days of 2012, until there is either:  (1) a resolution of the issue; or (2) implementation of the reduction because the Sustainable Growth Rate issue has  not been resolved.  Clearly, the providers of healthcare to the Medicare population are being held hostage in this crisis.

See our prior blog as to steps you can take regarding your continued provision of services to Medicare patients.

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