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Posted on Friday, December 16th, 2011 at 5:17 am.

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Washington – Lawmakers again find themselves with less than a month to pass legislation to stop a steep decrease in Medicare payments to physicians.

Doctors are in the familiar situation of facing severe pay cuts brought on by Medicare’s sustainable growth rate formula. On Jan. 1, the Centers for Medicare & Medicare Services is set to start paying claims for Medicare services at 27.4% less than 2011 rates.

The American Medical Association had hoped that the Congressional Joint Select Committee on Deficit Reduction, dubbed the “super committee,” would eliminate the SGR during its months-long work to address federal deficits. But the committee failed to reach any agreement, not only leaving the SGR intact but also triggering “robotic, across-the-board spending cuts that do not address critical structural problems in the federal budget,” said AMA President Peter W. Carmel, MD.

“The deficit committee had a unique opportunity to stabilize the Medicare program for America’s seniors now and for generations to come,” Dr. Carmel said. “Once again, Congress failed to stop the annual charade of scheduled Medicare physician payment cuts and short-term patches, which spends more taxpayer money to perpetuate a policy everyone agrees is fatally flawed.”

Rep. Jeb Hensarling (R, Texas) and Sen. Patty Murray (D, Wash.), the committee’s co-chairs, released a Nov. 21 statement expressing deep disappointment that they were unable to reach a bipartisan deficit reduction agreement.

“Despite our inability to bridge the committee’s significant differences, we end this process united in our belief that the nation’s fiscal crisis must be addressed and that we cannot leave it for the next generation to solve,” the lawmakers said.

The committee was created during negotiations to raise the federal debt ceiling in August. The Budget Control Act directed the panel of six Democrats and six Republicans to develop a plan that cut federal budget deficits by at least $1.2 trillion over 10 years. The failure to reach an agreement triggers $1.2 trillion in automatic spending cuts, divided between defense and nondefense spending, starting in 2013.

The act exempted Medicare patient benefits and the Medicaid program from the automatic cuts, meaning that Medicare pay to health professionals will be on the chopping block. But the statute capped the total amount that can be cut from Medicare to 2% per year. This totals about $123 billion coming out of the program over the next decade, according to a Sept. 12 Congressional Budget Office report.

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