21 Percent Medicare Pay Cut Hits Physicians June 1

Physicians again find themselves on a crash course with the 21 percent Medicare physician pay cut set to take effect June 1. Congress failed to pass the "extenders" bill - including tax measures, unemployment compensation and a sustainable growth rate (SGR) physician fee fix - before leaving town for Memorial Day.

It's another shameful déjà vu, reminiscent of the fiascos physicians encountered at the beginning of April and May when the fee cut technically went into effect. Congress will take up the extenders bill when it returns June 8. Anticipating eventual Congressional action, CMS has instructed its contractors to hold claims for the first 10 business days of June. Under the current law, clean electronic claims are not paid any sooner than 14 calendar days (29 for paper claims) after the date of receipt, so the hold should have minimum impact on provider cash flow.

Physician groups, including the Academy, will continue their aggressive push for full repeal of the SGR pay formula. We must keep the pressure on Congress! You can help:

• Contact your representative and senators if you have not already done so and call for a permanent repeal of the SGR formula
• Use Academy-prepared talking points to write a letter to the editor of your local newspaper and reach out to your local news radio station(s); contact your local media through the Academy website
• Ask your patients to write to their senators, telling them to permanently fix Medicare physician payment
• Contribute to OPHTHPAC, a critical component in the Academy's strategy to permanently repeal the SGR

Medicare Options

The Academy believes ophthalmologists should know their options. Medicare participation options are listed on the AMA website. While physicians cannot change their participation status until November, they can opt out of the program at any time.

The Academy will provide up-to-date information on Medicare physician payments so that you may make an informed decision about your participation.

In addition, the Academy has joined the Texas Medical Association (TMA), which has launched a million-signature campaign calling for a permanent solution to Medicare physician payment. Members are encouraged to sign the TMA's online petition and encourage patients to also join in this effort. A patient flyer (in color or B/W) that includes a brief summary of the issue and the Web link for the petition is also provided.

If you have questions, contact the Academy's Governmental Affairs Office at 202.737.6662.

Last Revision: June 03, 2010