CMS issues updated contingency plan for Medicare physician payments

The Centers for Medicare & Medicaid Services tomorrow will begin releasing held Medicare Physician Fee Schedule claims, paying them on a first-in, first-out basis at the reduced rate required under the Sustainable Growth Rate methodology. CMS said that each day it will release one day's worth of held claims and hold the claims received for that day, continuing to hold a total of 10 days' worth of claims. If Congress acts to avert the negative update, the Medicare Administrative Contractors will automatically reprocess the claims paid at the reduced rate, the agency said. A one-year delay of the 21% payment reduction expired March 31. The House last month passed legislation (H.R. 2) that would permanently replace the SGR formula. The Senate began consideration of the bill today.