Yesterday, the U.S. House of Representatives passed legislation, on a 355 to 59 vote, to postpone a July 1st 10.6% cut in payments to physicians treating Medicare patients. They instead recommended trimming the government’s funding of the wasteful Medicare Advantage programs, a proposition that the White House has threatened to veto.

The Medicare cuts can seriously threaten the viability of many medical practices and may force doctors to stop seeing Medicare patients. The current postponement under the House legislation is only for 18 months and the ball has moved to the Senate’s court. Powerful health insurance companies are aggressively opposing the House’s decision since it recommends reducing the scope of Medicare Advantage programs. Humana has the most to loose since Medicare Advantage accounts for 48% of its revenues. Patients and doctors, on the other hand, have a lot to gain if the government eliminates these programs.

Forbes

Filed under: Health Policy