Medicare/TRICARE Reimbursement Bill Fails in Senate

“The Medicare Physician Fairness Act” (S. 1776) was defeated last week in the Senate. Sponsored by Senator Debbie Stabenow (Mich.), the legislation proposed to reverse a 21-percent cut in Medicare and TRICARE payments for doctors that is scheduled to take effective January 1, 2010, and protect against future cuts in ensuing years.   The bill is especially important to TRICARE beneficiaries because TRICARE reimbursement rates are tied to those for Medicare providers and, without congressional action to halt these cuts, doctors may choose not to accept TRICARE patients. Some health care providers already choose not to participate in the Medicare and TRICARE programs because of low reimbursement rates, citing extra TRICARE administrative burdens and fewer military patients as added challenges.

Despite the failed vote, Senate leaders pledged to find a way to approve and fund at least a one-year fix before the end of December to ensure the 21-percent cut in Medicare and TRICARE payments for doctors will not take effect.