Update on Failed Tax Extenders Bill and Other Public Policy Issues
June 29, 2010
Failed Tax Extenders Bill:
A months-long effort to pass a package of tax cut extensions and unemployment benefits collapsed Thursday night amid partisan recriminations, leaving a core component of the Obama administration’s economic recovery agenda in tatters.
Senate Majority Leader Harry Reid, D-Nev., said he would pull the bill (HR 4213) from the floor after the Senate failed, 57-41, to garner 60 votes for a motion to invoke cloture, or end debate, on the $109 billion version of the legislation released June 23.
Finance Chairman Max Baucus, D-Mont., has spent weeks modifying tax hike provisions, cutting spending and adding offsets to woo three moderates — Republicans Susan Collins and Olympia J. Snowe of Maine and Democrat Ben Nelson of Nebraska. In the end, they did not budge.
Senate Majority Leader Reid has stated that the ball is now in Republicans’ court and that several governors were expected in Washington next week to push the Senate to act. However, it is unlikely that unemployment benefits, Medicaid assistance for states and, particularly, COBRA health care subsidies for the jobless will be added to any new legislation at this time.
The Senate has spent a total of about two months debating various iterations of the extenders bill, and just last week failed to invoke cloture on an earlier version, which led to the latest rewrite. After the vote, Democrats blocked a GOP attempt to advance a one-month benefits extension fully offset by unused stimulus spending that Baucus has proposed as an offset in his own package.
The defeated Democratic package would have revived expired tax cuts and extended unemployment benefits from the 2009 stimulus (PL 111-5). It also would have provided enhanced federal Medicaid funding to states, as proposed in earlier versions of the package, but would have reduced that assistance to about $16.2 billion, down from $24.2 billion, and offset the cost through spending cuts elsewhere.
The only provision in the package that would not have been offset was an extension of long-term unemployment insurance through Nov. 30. The measure would have added $33.3 billion to the deficit.
“Medicare Doc Fix”—Medicare Payment Rate for Physicians:
President Obama on Friday signed a law canceling a 21.3% pay cut for Medicare physicians and replacing it with a 2.2% pay increase. The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act is retroactive to June 1.
Following the signing of the bill, the Centers for Medicare & Medicaid Services directed its contractors to begin re-processing physician and provider claims at the new rate. The 21.3% cut had taken effect June 1, but claims were held until June 18. After June 18, claims were processed at the reduced rate. CMS expects to begin processing claims at the new rate no later than July 1, according to a letter released by the agency Friday morning.
The new calculation of the Medicare Physician Fee Schedule is valid through Nov 30. A recent report from the Medicare Payment Advisory Commission calculates that Medicare physicians will face a 26.2% reimbursement cut in 2011.
Congressional Recess:
With July 4 and August recess quickly approaching, now is a great time to call your Member of Congress’ district office to schedule an appointment during their district work period. The public policy department is currently compiling a list of town hall meetings and other public events in your area which you will receive soon.
U.S. House of Representatives Schedule:
July 5-9: Independence Day District Work Period
August 9-September 10: Summer District Work Period
U.S. Senate Schedule:
July 5-9: Independence Day District Work Period
August 9-September 13: Summer District Work Period
