Doctors’ Medicare payments were going to be cut up to 25% in January, 2011, to pay for Obama’s health care plan. The funds are to pay for providing health insurance to millions of uninsured Americans. Scrambling to avoid the deadline for implementing the cuts, Congress came up with a solution – though it’s temporary.
We’ll be using financing funds for the healthcare plan to save Medicare. Nineteen billion dollars from the funds will go back to Medicare to keep physician reimbursement at current rates. The money will come from tighter tax credit rules that apply to premiums. Basically, people who qualify for the tax credits and do not report an increase in income during the year (new job, pay raise, etc.) will have pay back their tax credits based on a sliding scale. The previous stipulation for paying back tax credits had a ceiling of $250 per individual and $400 per household. There will still be a limit to the payback amount, but that limit is not yet determined.
This temporary fix will buy congress 12 months to come up with a more stable plan.
Read more at Associated Press.
At IDMS, we stay connected with the latest news on Medicare, Medicaid, PQRI/PQRS, and healthcare related issues. If your physician office wants to maximize Medicare and Medicaid reimbursement in 2012, call IDMS today. We offer data abstraction, physician chart audits, customized forms, and team training to improve our clients’ bottom line.