The House approved the budget reconciliation conference report on February 1, by a vote of 216-214. The Senate already had approved the bill; it is now scheduled to be forwarded to President Bush for his signature.
The bill freezes 2006 Medicare payments to physicians at 2005 rates, reversing a 4.4% reduction that took effect on January 1. This decrease occurred because Congress did not pass the 2006 budget before the end of 2005.
Medicare processed January 2006 claims under the 4.4% reduction. It will instruct Medicare contractors to reprocess these claims automatically at 2005 rates, according to a letter from Herb Kuhn, Director of the Center for Medicare Management, to Representative Bill Thomas, chairman of the House Ways and Means Committee. Physicians and other providers should not need to resubmit claims. Reprocessing should be completed by July 2006, according to the letter. Medicare will reimburse physicians in one lump sum payment for the difference between the 4.4% rate reduction and the now-corrected 2006 rates, the letter said.
A 45-day physician enrollment period will begin soon, so that physicians who opted not to participate in Medicare due to the 4.4% rate cut can enroll. Participant status would then be retroactive to January 1, 2006, according to the letter.
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