Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Senate bill would stave off rate cut for Medicare docs

By Tami Luhby, senior writer

NEW YORK (CNNMoney.com) -- The Senate on Tuesday introduced a bipartisan bill that would prevent a 25% cut in doctors' Medicare reimbursement rates in 2011.

The bill, which would cost $19.3 billion over 10 years, would be paid for by changing a provision of the health reform act that provides tax credits for people who buy coverage. The credit is scaled to a person's income. The legislation would increase the amount people would have to repay if they underestimate their earnings.

In a rare act of unanimity, the bill is being sponsored by Senate Majority Leader Harry Reid of Nevada, Minority Leader Mitch McConnell of Kentucky, Finance Committee Chair Max Baucus of Montana, and Chuck Grassley of Iowa, the ranking Republican on the committee.

That line-up of heavy hitters bodes well for the bill's passage. It would then move to the House of Representatives, which supported previous efforts to keep pay levels intact for Medicare doctors.

A 1997 law requires that doctors' Medicare rates be adjusted each year based on the health of the economy, with the goal of keeping the program in the black. Rate cuts have been blocked 10 times in the last eight years, including five times this year.

Doctors have been heavily lobbying lawmakers to prevent the scheduled cut from taking effect next year.

The American Medical Association had said that if the cut were enacted, some doctors would have had to stop accepting Medicare patients. Some 43 million people, mostly senior citizens, receive Medicare benefits. To top of page

Index Last Change % Change
Dow 17,798.49 -14.90 -0.08%
Nasdaq 5,127.53 11.38 0.22%
S&P 500 2,090.11 1.24 0.06%
Treasuries 2.22 -0.01 -0.31%
Data as of 4:28am ET
Company Price Change % Change
General Electric Co 30.36 0.00 0.00%
Bank of America Corp... 17.48 0.04 0.23%
HP Inc 12.61 -0.03 -0.24%
Pfizer Inc 32.79 -0.08 -0.24%
Walt Disney Co 115.13 -3.54 -2.98%
Data as of Nov 27


Sumner Redstone, the media mogul who controls Viacom and CBS, is at the center of a legal dispute. One side says he is practically unable to make decisions for himself. The other says he is "engaged and attentive." More

Gold futures hit a low of $1,051.60 an ounce, yet another reminder of just how out of favor gold has become since its all-time high of nearly $1,890 in 2011. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Hive, a startup funded by the UN, is tasked with getting more Americans engaged with the refugee crisis. More

Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More