Medicare 'doc fix' tied to fiscal cliff negotiations

As negotiations over the so-called "fiscal cliff" continue in Washington, providers are watching to see if a potential 30 percent cut in pay to doctors who treat Medicare patients will be addressed (Source: "A Huge Pay Cut For Doctors Is Hiding In The Fiscal Cliff," NPR Planet Money blog, Nov. 29, 2012).

Leaders of both parties have said they want to avoid the cut by passing a "doc fix," a maneuver used numerous times since Congress passed scheduled reimbursement cuts to Medicare providers 15 years ago.

The original bill, passed in 1997, called for incremental decreases in Medicare payments to doctors and although Congress has moved to stop the decreases each time, the formula in the law makes the cuts cumulative, meaning this year if no action is taken, the decrease in reimbursement will be 30 percent.