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ePolicy Special: Obama to sign Physician Pay Fix, CLFS Cut by $2.7 Billion

Friday, February 17, 2012

Congress Sends Payroll, Unemployment, Physician Fee Fix Extension Bill to Obama
Measure Cuts CLFS $2.7 Billion, Eliminates TC Grandfather Provisions

On Feb. 17, Congress approved a compromise agreement to extend the payroll tax deduction and unemployment insurance. The measure, which will soon be sent to President Barak Obama to be signed into law, also reverses a 27-percent cut in Medicare a physician fee rate, which was scheduled to go into effect on March 1.

While the reversal of the impending cut in physician payment rates is indeed welcome news, ASCP is greatly disappointed that Congress imposed a $2.7 billion cut in the clinical laboratory fee schedule and eliminated the technical component grandfather provision to help pay for the physician fee fix. The technical component grandfather provision, which will end on July 1, allows independent clinical laboratories, under certain conditions, to bill Medicare for anatomic pathology services provided to hospital patients.

ASCP wishes to thank the thousands to laboratory professionals who participated in ASCP's recent action alert urging Congress not to cut the CLFS. ASCP was very pleased with the member turnout as approximately 3,000 letters were sent within 36 hours.