- Industry News
Nov 02, 2011: The Centers for Medicare and Medicaid Services (CMS) announce drastic reimbursement cuts for physicians, starting January 1, 2012. The rates reimbursed will be cut by 27.4%—which is a reduction from the CMS estimate in March of 29.5%.
Under the Balanced Budget Act of 1997, CMS is required to adjust reimbursement rates based on a formula known as the sustainable growth rate (SGR). Without a change in law from Congress, this 27.4% reimbursement reduction will take effect in the calendar year 2012. This is the eleventh time the SGR formula has resulted in a payment cut, although the cuts have been averted through legislation in all but CY 2002.
The American College of Physicians in their detailed report, wrote a scathing review of these mandatory budget cuts, and call on congress to join together to fix this flawed process.
• Final Medicare Rule Cuts Doc Pay Drastically
• Medicare Announces 27.4 Percent Physician Payment Cut in the 2012 Physician Fee Schedule; Obama Administration Commits to Ensuring Cuts Do Not Take Effect
•Physicians Oppose Budget Cuts