Payroll tax extension legislation signed into law Dec. 23, 2011, delayed the 27.4 percent Medicare pay cut due to the Sustainable Growth Rate (SGR) formula for two months. The measure also included an extension of the floor on the work geographic practice cost index (GPCI) and certain other policies.

The Centers for Medicare & Medicaid Services (CMS) confirmed that all other changes included in the Medicare physician payment final rule for 2012 will still take effect. Do not expect payment rates to remain unchanged. See details here.

Finally, in the Jan. 4, 2012, Federal Register, CMS posted a correction notice to the 2012 final rule that modifies the relative values for a number of services. The agency also posted to its website a revised relative value file reflecting both the corrections and the legislation that stopped the 27.4 percent cut.

Watch here for further updates from CMS as more information becomes available.