As the fight for health care reform continues on Capitol Hill, we wanted to take a moment to update you on the APA Practice Organization’s efforts toward improving Medicare payments for practicing psychologists. At this time, the political situation on Capitol Hill remains very fluid. Following the loss of their super-majority in the Senate, Democratic leaders are reassessing their strategies on health care reform and a host of other issues. With much at stake for psychologists, their patients and their profession, we remain committed to health care reform.
In addition to the inclusion of our broader health care reform priorities, the House and Senate bills both included an extension of our 5% psychotherapy payment restoration, which we were able to secure in each bill considered in committees of jurisdiction in both chambers. The provision was first adopted in 2008 following the implementation by the Centers for Medicare and Medicaid Services (CMS) of across-the-board cuts resulting from the last Five Year Review, when we persuaded Congress to restore payments for psychotherapy, the only codes that received relief. Unfortunately, without final action on the health care reform bill, our provision and many other extender provisions expired at the end of 2009. We recently met with leaders of the Senate Finance Committee, who have indicated their intention to apply the provision retroactively to all 2010 payments once legislation emerges. As Congress determines how it will move forward in the weeks ahead, we will continue to work to ensure psychology’s priorities are included in any health care reform that moves forward and that our restoration is extended retroactively, whether through the health care measure or another vehicle.
As we reported previously, the President signed legislation on December 19 postponing the scheduled 21.2% Sustainable Growth Rate (SGR) cut for two months through February 28. The SGR formula has created an untenable situation for Medicare patients, providers and the system as a whole, in which every year we must collectively fight an automatic cut in Medicare payment rates. APAPO continues to press for an end to short-term fixes, and in 2009 we supported legislation that passed the House that would permanently replace this flawed policy. Legislation passed by the Senate last week and under consideration in the House this week may increase the prospects for a longer-term solution.
As part of the federal debt limit extension bill, Congress has included language re-imposing a statutory requirement, known as PAYGO, that requires spending increases and revenue decreases to be fully offset. The provision makes significant, partial exceptions for certain policy areas, including the SGR cuts. Essentially, this means Congress would not have to offset the cost of continuing provider payments at current levels for five years. While Democratic leaders have not yet clearly indicated how they intend to address the SGR cut before the February 28 deadline, this legislation that the President is expected to sign could increase the potential for a multi-year measure.
Medicare reimbursement continues to be a critical focus for APAPO. With your grassroots support, we will continue to press, on both the legislative and regulatory level, for fair reimbursement for practicing psychologists. We will keep you posted in the important weeks ahead.
Jeff Cook, J.D.
Director of Field & State Operations
American Psychological Association Practice Organization 750 First Street, NE Washington, DC 20002
(202) 336-5875 (Office)
(202) 336-5797 (Fax)
jco…@apa.org (Email)
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