Congress Overrides Presidential Veto; H.R. 6331 Enacted

July 21st, 2008

After months of wrangling, both the House and Senate overrode President Bush’s veto of HR 6331, effectively reversing the 10.6% payment cut and halting the 5.4% cut scheduled for January 1, 2009.

In addition to reversing the cuts, the bill restricts Medicare Advantage plans, extends PQRI reporting and provides for a 2% PQRI bonus payment, gives bonuses for e-prescribing by eligible physicians, confers authority to the states to regulate Medicare Advantage marketing abuses, and expands certain benefits.

CIGNA Medicare has communicated that it will make payments for approximately the next 10 days at the reduced 10.6% rate and without the 0.5% increase; it will then automatically reprocess these claims to include the increased rates of payment. (This delay is necessary because CIGNA is awaiting the new fee schedule file from CMS.) Claims submitted between July 1 and July 15 will be processed at the reduced rate (-10.6%) on a first-in, first-out basis. CIGNA Government Services will update its website to include the revised rates.

Click here to view the document, “Update on Medicare claims processing,” from the AMA. In addition, you can see the letter Senator Richard Burr (R-NC) issued July 11 explaining the reasons for his vote against HR 6331.

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