One of the key features of the final Medicare Physician Fee Schedule (MPFS) for 2012 is the Sustainable Growth Rate that mandates a 27.4 percent cut in Medicare professional services reimbursements.

The pay cut would have been effective January 1, 2012 had Congress not intervened. The U.S. House of Representatives reached an agreement with the Senate on a two-month extension to extend current Medicare payment rates for two months in December 2011. The President signed into law the Temporary Payroll Tax Cut Continuation Act of 2011 (TPTCCA). The TPTCCA provides a 0 percent update through February 29, 2012. If a temporary or permanent fix is not established by February 29, 2012, the 27 percent reduction for the 2012 MPFS will take effect March 1, 2012.

GIRS will continue to monitor the Congressional decision for the Medicare Physician Fee Conversion Factor throughout the year.

Sources:
American Medicare Association, 2011. Medicare pay cut averted; Congress OKs two-month patch.

CMS, 2012. MLN Matters® Number: MM7737. Emergency Update to the CY 2012 Medicare Physician Fee Schedule Database (MPFSDB).