Physician Pay Cut Delayed Through 2012

March 8, 2012


The 27.4% Medicare physician payment reduction that was scheduled to go into effect on March 1 has been delayed through the end of 2012. The delay was included in recent legislation signed by President Obama to extend the payroll tax cuts.


The health portion of the legislation also makes other changes, including the following:


  • Cuts Medicare hospital “bad debt” payments by $6.9 billion over 10 years;
  • Cuts the Affordable Care Act prevention fund by $5 billion; and
  • Cuts clinical lab fees $2.7 billion over 11 years.