Senate Appropriations Bill
Includes Medicare Physician and Hospital Payment Provisions
January 17, 2003 - Included in the Senate omnibus
appropriations bill (H.J.
Res. 2) are two Medicare payment provisions for physicians
and certain hospitals. The physician provision provides a
temporary freeze from the CY 2003 payment reductions, holding
physician payments at CY 2002 levels from March 1 - the effective
date of a 4.4 percent cut - through Sept. 31, 2003. The hospital
provision would increase the standardized amount, or base
payment rate, for rural and other urban hospitals from April
1 through Sept. 31, 2003.
Reportedly, Sen. Chuck Grassley (R-Iowa) worked with Senate
Majority Leader Bill Frist (R-Tenn.) to include the provisions.
The provisions are estimated to cost $1.2 billion. The Senate
leadership wanted to limit the number of Medicare provisions
to prevent significant increases in Medicare spending, as
Congress will be dealing with a comprehensive Medicare reform
bill later this year.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526
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