Thursday, December 22, 2011

Health Provisions in House UI/Payroll Tax Bill

As you may have heard, the House introduced a new two-month payroll tax/UI extension this afternoon.  Text is available here, and a CBO score is online here.

The health provisions of the House-introduced bill are UNCHANGED from the measure the Senate cleared last Saturday.  Namely, the legislation provides a zero percent update in physician reimbursement levels for January and February 2012, and stipulates that the payment increase shall be disregarded for purposes of calculating SGR rates for future periods.  Those provisions cost $3.6 billion.  The bill also includes several two month extensions of expiring Medicare provisions (listed in full below), costing a total of $510 million.  The entire bill is paid for through non-health savings, namely an increase in guarantee fees for Fannie Mae and Freddie Mac mortgages.

Numerous reports indicate the House will consideration the measure during its session tomorrow.  Timeline for Senate consideration remains unclear; however, under the order of December 17, the Senate is scheduled to convene tomorrow at 9:30 AM and on Tuesday December 27 at noon.

 

Medicare Physician Payment:  Provides for a 0 percent update in reimbursement levels for January and February 2012.  Provides that the payment update shall not be considered when calculating the Sustainable Growth Rate (SGR) reimbursement levels in future periods.

Medicare “Extenders:”  Extends for two months a series of Medicare and health-related provisions, all of which would expire at the end of the calendar year unless otherwise noted:

  • Section 508 hospital reclassifications;
  • Geographic floor for work;
  • Therapy caps exception process;
  • Technical component of certain physician pathology services;
  • Reimbursement raises for ambulance services;
  • Mental health reimbursements (5% increase);
  • Outpatient hold harmless provision;
  • Minimum payment for bone mass measurement;
  • Qualifying Individual (QI) program, assistance to low-income seniors in paying Medicare premiums; and
  • Transitional Medical Assistance, which provides Medicaid benefits for low-income families transitioning from welfare to work.