Medicare puts off payment cuts to doctors

The Centers for Medicare & Medicaid Services announced Monday that it will not process Medicare claims until July 15, giving Congress more time to adopt legislation that would prevent a 10 percent cut in payments to doctors (Source: “Medicare gives docs reprieve,” Cincinnati Enquirer, July 1, 2008).

The cut was set to automatically take place July 1 because Medicare exceeded spending goals. In the past, Congress has restored the payment rates when faced with similar automatic reductions. This time, however, it failed to do so before adjourning for the Independence Day holiday. Doctors had warned that if the payment cuts were not rectified, they would deny service to their Medicare patients.