The American Taxpayer Relief Act, passed on New Year’s Day, averts the 26.5 percent pay cut for Medicare physicians for the remainder of 2013. However, hospital and other providers will see cuts in their Medicare pay.
The last-minute effort continues middle-class tax cuts but delays spending cuts, referred to as “the sequester,” for two months. And another short-term fix still leaves the sustainable growth rate (SGR) formula in place, only further delaying a permanent fix.
“Again, Congress has not solved the problem for Medicare beneficiaries and their doctors,” said Mike Rinebold, ISMA director of Government Relations. “This uncertainty only drives more physicians to rethink their participation in Medicare and stalls any progress toward new delivery models aimed at improving quality and value for patients.”