SCHIP compromise passed; physician payment cut not addressed

Posted on Oct 2, 2007

The Balanced Budget Act of 1997 created the State Children's Health Insurance Program (SCHIP) and authorized $39 billion over 10 years for the program. Funding for the SCHIP expired Sept. 30. In late July 2007, the House of Representatives passed H.R. 3162, known as the Children's Health and Medicare Protection (CHAMP) Act. This bill authorized $50 billion over five years for the SCHIP, and contained important Medicare provisions that would have replaced the 9.9 percent physician payment reduction in 2008 and the anticipated 5 percent reduction in 2009 with two years of payment increases.

Also in late July, the Senate passed the Children's Health Insurance Program Reauthorization Act, which funded the SCHIP program with $35 billion over five years, but did not contain Medicare provisions.

During negotiations between the Senate and the House, negotiators removed Medicare provisions, including those related to physician payments. On Sept. 25, the House passed H.R. 976 with a 265-159 margin. This SCHIP reauthorization bill reflected the Senate funding level. The Senate passed the bill on Sept. 27 by a vote of 67-29, but the president has indicated his intent to veto this legislation.

It is vital for members to continue contacting their senators and representatives through the MGMA Advocacy Center to urge them to stop both the proposed 9.9 percent and forecasted 5 percent cuts to Medicare payments. Rather, medical practices need them to pass two years of positive Medicare physician payments.

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