Senate Shoots Down Bill to Intercept Medicare Pay Cuts

Senate Shoots Down Bill to Intercept Medicare Pay Cuts in Politics and Legislation

Unsurprisingly, the bill to block pay cuts to Medicare doctors was defeated in the Senate yesterday. This is the bill that would have intercepted the sustainable growth rate (SGR) formula that is more or less intended to curb doctors’ rates from climbing too fast.

Both the American Medical Association and the AARP said they were “deeply disappointed,” reports the Wall Street Journal’s health blog.

But, if history is any indication, the proposed 21% cuts won’t go through anyway. Congress usually passes a short-term fix to stop that year’s scheduled cuts. Then does it again the next year and the one after that, but always stops short of scrapping the system altogether.

The way Senate Majority Leader Harry Reid put it: “Right now, we’re going to a one-year fix.”

Here’s the thing: Blocking the cut would add $247 billion in federal spending over the next decade. And while there is talk that the Republicans will offer amendments to offset the cost, nothing has yet materialized.

However, the issue is far from over. More wrangling is going to ensue around this, especially with the recently introduced House bill that would completely axe the SGR formula. 

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