Congressional Super Committee Update!

The Demise of the Super Committee

Today, the Joint Congressional Committee on Deficit Reduction (otherwise known as the Super Committee) declared defeat and will not reach agreement on a package to reduce spending by $1.5 trillion. It’s all over except for the shouting and the blame game.  The Super Committee plans to issue a statement in writing after the markets close this afternoon.  (There’s always a chance that something herculean could happen this afternoon in Congress, but I doubt it.) 

What does this mean for physicians?

The law now requires across-the-board spending cuts, called sequestration, that will begin January 1, 2013 – ONE YEAR FROM NOW.

Many members of Congress may try to undo the sequestration deal because the military takes 50% of the cuts.  However, both  Republican and Democratic Congressional leaders have reiterated their support for the original deal that requires sequestration. 

Therefore, on January 1, 2013 NEXT YEAR –Medicare will reduce physician payments by 2% because of the sequestration agreement.

The entire Medicare program will take a 2% cut, including GME, Medicare Advantage and other programs within Medicare.

However, the Medicaid program is protected from cuts under the sequestration agreement.

What about 2012? 

There will not be a complete repeal of the Medicare SGR payment formula this year.  And  the 27.4% Medicare SGR payment cut still looms on January 1, 2012. 

Now that the Super Committee agreement has gone down, Congress will turn their attention to several significant issues that they must address  before the end of the year, including extending Unemployment Insurance funding, extending the Alternative Minimum Tax (AMT), extending the payroll tax cut and STOPPING THE 27.4% MEDICARE PHYSICIAN PAYMENT CUT BEFORE JANUARY 1, 2012.

The good news is that there are several large issues that Congress must address before the end of the year and the leaders have listed the Medicare physician payment cut as a major priority. 

Please keep calling, writing and meeting with your Members of Congress.  It is imperative that we stop the 27% cut BEFORE Jan 1, 2012.

Use the AMA Grassroots Hotline at 800 833 6354; plug in your zip code and it will automatically connect you to your Representative/Senator. 

CMA will be aggressively pushing Congress to stop the cut.    

Thank you for all of work on these Super Committee issues.  CMA physicians left no stone unturned.  California physicians made more phone calls to Congress than any other state/per capita.  Obviously, we were caught up in much larger issues about the direction of our country, the level of taxation and the future of  entitlement programs.