AANA Federal Government Affairs
HOTLINE Extra
Number 2006-02(a) Week of Monday, January 30, 2006


In This Issue:


* House OKs Reversing 2006 Medicare Part B Payment Cuts; Awaits President's Signature




>> House OKs Reversing 2006 Medicare Part B Payment Cuts; Awaits President's Signature


Congress completed action Feb. 1 to reverse the 4.4% Medicare Part B payment cuts that had been affecting CRNAs and all healthcare providers serving Medicare patients since January 1, 2006.

With the House of Representatives having agreed Feb. 1 to Senate-passed changes to S. 1932, a deficit reduction package, on a close 216-214 vote, the measure now goes to the President for his signature, which is expected shortly. Among many other provisions, S. 1932 replaces the automatic 4.4% Medicare Part B cuts with Medicare payments that are the same as those provided in 2005, a 0% change. Once it is signed into law, the change is retroactive to services provided beginning Jan. 1, 2006. With Medicare allowed charges for anesthesia provided by CRNAs and anesthesiologists amounting to approximately $2 billion in 2006, Congress' action secures approximately $88 million more Medicare payments for anesthesia services than would have otherwise been provided, holding Medicare case volume and mix constant.

"In the interest of America's seniors, Certified Registered Nurse Anesthetists have long been strong advocates for a strong Medicare system," said Frank Purcell, AANA's senior director federal government affairs. "CRNAs' advocacy, together with that of many other Americans, has helped to further secure Medicare patients access to safe anesthesia care and to reverse harmful Medicare payment cuts."

With Congress' action, the mean Medicare Part B anesthesia conversion factor for 2006 will be about $17.76, not $16.96. The mean Medicare conversion factor for medical and surgical services will be about $37.90 not $36.18. In the case of anesthesia, Medicare makes a payment by calculating the conversion factor times base units plus time for each anesthesia service. For anesthesia and for medical and surgical services, these figures are a national mean; actual conversion factors vary by locality based on local costs and other factors.

The measure's Medicare payment change applies until Dec. 31, 2006.  Then, unfortunately, another round of Medicare "sustainable growth rate" (SGR) formula payment cuts against CRNAs and other healthcare providers continues. Though the government's Medicare Payment Advisory Committee (MedPAC) has recommended increasing Part B payments 2.7% in 2007, the Medicare SGR payment formula calls for a 4.6% payment cut in 2007 unless Congress acts. AANA will undertake educational and advocacy activities to address future Medicare payment cuts through the year.

For More Information

* Link to S 1932, http://thomas.loc.gov , enter "S. 1932" in the bill number prompt.
* See how your U.S. House members voted on the resolution agreeing to the Senate amendments to S. 1932,
http://clerk.house.gov/evs/2006/roll004.xml
* Read the Centers for Medicare & Medicaid Services memo about retroactive application of the provisions of S. 1932, http://www.cms.hhs.gov/apps/media/press/release.asp?Counter=1746.



>> For More Information


The AANA Federal Government Affairs Hotline is published for the nurse anesthetist members of AANA each week Congress is in session by the AANA Office of Federal Government Affairs, Washington DC, 202-484-8400, info@aanadc.com, Frank Purcell, Senior Director. C 2006 American Association of Nurse Anesthetists.