Additional Medical Imaging Cuts Averted in New U.S. Budget

According to the AuntMinnie.com website for the imaging community, the final version of healthcare budget legislation passed by the U.S. Congress, before it recessed for the year-end holidays, spares the medical imaging profession, including vascular ultrasound technology, from any significant additional cuts in reimbursement. Many medical imaging advocates were concerned that Congress might surprise the medical imaging profession again with a last-minute reimbursement cut “gift” along the lines of the Deficit Reduction Act of 2005 that was passed in late December 2005 before Congress adjourned.

As we had hoped, the U.S. House of Representatives passed legislation on Dec. 19th by a vote of 411 to 3 that will delay for six months a 10.1% cut in the Medicare Physician Fee Schedule (PFS). This cut, as part of the 2008 CMS Final Rule, was scheduled to start on Jan. 1, 2008, mandated by the sustainable growth rate (SGR) formula in Medicare. The legislation was passed by unanimous consent in the Senate of Dec. 18th. The medical community remains concerned that this unusual Medicare “fix” only addresses the first half of 2008. Recent years have seen similar year-end adjustments to planned PFS cuts, in effect by borrowing against future year’s budgets. Additionally, many in the medical imaging profession believe that putting off the SGR cuts without reforming the system could mean that further cuts to the technical component of imaging will most likely be under consideration in early 2008.

The law, called the Medicare, Medicaid, and State Children’s Health Insurance Program (SCHIP) Extension Act of 2007, replaces the physician pay cut with a 0.5% increase for the first six months of 2008. Thus, Congress must still address this scheduled cut starting July 1, 2008. The package also will extend funding for SCHIP through March 2009.