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Published Online: 7 March 2003

Medicare Reduction Reversed

On February 20 President George W. Bush signed the Fiscal 2003 Omnibus Appropriations Bill (HJ Res 2) that includes language permitting the Department of Health and Human Services to replace the 4.4 percent reduction in Medicare reimbursement rate for physicians with a 1.6 percent increase.
Thomas Scully, administrator of the Centers for Medicare and Medicaid Services (CMS), told Congress that the change would become effective March 1, the date the proposed reduction would have taken place. He cautioned, however, that logistics with Medicare carriers must be worked out and that there might be a lag time in payment adjustments.
APA Medical Director James H. Scully, M.D., said, “This is a big win. Thanks to all of the many APA members who called, wrote, and visited with their senators and representatives in support of this much-needed payment ‘fix.’”
The legislation also includes a provision that provides $54 billion to increase Medicare reimbursement to physicians and hospitals over the next 10 years.

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Published online: 7 March 2003
Published in print: March 7, 2003

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