December 2007

Congress Acts on Therapy Cap, Fee Schedule

Congressional advocacy efforts on Medicare legislation have paid off. Congress has approved a bill postponing the Medicare therapy cap and scheduled cuts to the physician fee schedule. The president is expected to sign the legislation, which extends the therapy cap exceptions process and implements a 0.5% positive update in the fee-schedule conversion factor until June 30, 2008. The Medicare, Medicaid, and SCHIP Extension Act of 2007 (S 2499) avoids a 10.1% cut in the conversion factor and a $1,810 cap on rehabilitation services. It also contains a variety of other provisions, including an 18-month extension of the State Children's Health Insurance Program (SCHIP).