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GOVERNMENT

Deal sets path for vote on Medicare physician pay fix

A prescription drug benefit is also pending.

By Markian Hawryluk, amednews staff. Dec. 1, 2003.

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Washington -- An agreement between House and Senate negotiators has set the stage for a final vote in Congress on a Medicare bill that would reform the program, add an outpatient prescription drug benefit and eliminate cuts in physician payment.

At press time, a vote was expected before Congress adjourned for the Thanksgiving holiday. Medicare officials said that should allow enough time for a Jan. 1, 2004, implementation of payment rates that reflect the 1.5% increase in physician reimbursement contained in the bill, as opposed to the previously scheduled 4.5% cut.

Additionally, the measure would limit some of the geographic adjustments to physician fees and provide bonus payments to doctors practicing in underserved areas.

The American Medical Association praised the package and urged Congress to pass it quickly.

"We are pleased that the Medicare conferees have reached agreement on an historic Medicare bill that provides seniors with the prescription drug coverage they need and ensures that they have access to a physician when they need one," said AMA President Donald J. Palmisano, MD.

Negotiators broke a stalemate in discussions by agreeing to a demonstration project of competition between private plans and traditional Medicare in up to six areas beginning in 2010. Ultimately, passage of the bill will depend on whether that compromise is acceptable to conservative House Republicans who pushed for more competition and Senate Democrats who fear a dismantling of the fee-for-service program.

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