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Budgets, Doc Fix, and Reid Retiring

Breaking News: Senate Minority Leader Harry Reid will not run for reelection in 2016, he said in a video message released this morning.

Budget: GOP leaders in the House and Senate have achieved a major goal of approving their fiscal 2016 budget resolutions this week. The House approved their proposal on Wednesday with the Senate following suit in the early morning hours Friday. The two chambers now face the task of reconciling their two bills before the April 15th deadline, which would establish the framework for annual appropriations bills and set the direction for other legislation through the privileged reconciliation process. The last time lawmakers adopted a budget conference report was in 2009. Both budgets push more funding to the military while laying the groundwork to dismantle the health care overhaul.

Doc Fix: On Thursday the House approved a package to replace Medicare’s oft-criticized physician payment formula in an overwhelming bipartisan vote. The legislation (HR 2) passed 392-37, with 212 Republicans and 180 Democrats joining to support the deal negotiated by Speaker John Boehner (R-OH) and Minority Leader Nancy Pelosi (D-CA).

If it clears the Senate, the bill will put an end to a cycle of 17 short-term “doc fix” bills that temporarily averted cuts to Medicare doctors dictated by the sustainable growth rate formula, or SGR. In addition to replacing the formula, the bill includes a two-year extension of funding for the Children’s Health Insurance Program (CHIP) and Teaching Health Centers for another two years, and would require wealthier seniors to pay more for their Medicare outpatient and prescription drug coverage to help offset the cost. The measure is only partially paid for, with the Congressional Budget Office projecting that it would increase the federal deficit by $141 billion over 11 years.

Unfortunately, the Senate left for a two-week recess early this morning without taking any action on the bill. Instead they have vowed to make it their first order of business when they return to the Capitol on April 13th.

The current one-year payment patch expires in four days and CMS has said it doesn’t have any plans to hold off on processing claims as it has done in the past to buy Congress time. But in an email to health professionals, the agency noted that electronic claims aren’t paid until at least 14 calendar days after they’re received, providing something of a cushion before doctors feel the scheduled cut. CMS also said it would provide an update by April 11 about whether Congress has acted.