Congress Passes Legislation to Avert Proposed Medicare Payment Cut

The Tax Relief and Health Care Act of 2006, approved by the U.S. House of Representatives and the Senate this past weekend, will stop the scheduled across-the-board 5% cut in the 2007 Medicare Physician Fee Schedule from taking effect on January 1. The previously announced reduction will be replaced with a zero-percent (0.0%) update for 2007 freezing Medicare reimbursement rates at 2006 levels. This legislation will ensure Medicare beneficiaries continued access to audiology and vestibular health care services in 2007.

Other provisions of the legislation include the establishment of a fund to promote Medicare physician payment stability and physician quality initiatives in 2008, and would extend a number of provisions in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) and the Deficit Reduction Act of 2005 (DRA). The American Academy of Audiology is looking forward to working with the 110th Congress to replace the flawed sustainable growth rate (SGR) formula with a long-term solution for positive future physician payment updates. The Academy will continue to monitor this issue and alert members with any updates. Please contact the Academy's Government Relations department at GR@audiology.org with any questions.