Last week, just before the Fourth of July recess, the Bush administration delayed a 10.6 percent Medicare physicians pay cut, which was scheduled to go into effect on July 1. A few Democrats scoffed at the gesture, saying it was “misleading” and that the administration froze the cut just for the sake of “appearance.”
According to the Associated Press, President Bush will unfreeze the cut and veto any bill that attempts to move it forward, although the bill’s supporters have enough votes to override his veto. The House of Representatives passed a bill that would halt the pay cut, and yesterday the Senate passed a similar version of the bill. Both measures passed by veto-proof margins.
Lawmakers who want to eliminate the pay cut would fund it by reducing spending on Medicare Advantage (MA) plans. The administration has stated it will veto any bill that reduces funding to MA plans. Over 9 million people are insured through MAs.
Speaking to the AP, White House spokesman Tony Fratto seemed to imply that the administration isn’t opposed to maintaining Medicare physicians’ reimbursements at present levels, but it isn’t willing to reduce choices for beneficiaries to do so.
And the battle continues.