Doc Fix: Preventing Cuts to Medicare Physicians (H.R. 4302)

What is H.R. 4302?

(Updated July 13, 2017)

This bill was enacted on April 1, 2014

The so-called "doc fix" Act. Prevents a 24% cut to Medicare physician rates set to take effect on April 1st, grants Medicare physicians a .5% fee increase through 2014, and delays updating the official U.S. system used to classify and assign codes to health conditions by one year, among an array of additional of additional health care provisions and benefits for physicians, hospitals, drug makers, and other providers. 

Argument in favor

Averts cuts to Medicare physicians.

Argument opposed

The Act is a short-term fix, not a long-term solution.

Impact

Impacts Medicare physicians, skilled nursing providers, hospitals, and mental health programs.

Cost of H.R. 4302

While this Act provides only a 13-month extension, the CBO estimates 14.4 billion in direct spending over 2014-15.

Additional Info

Media:

Bloomberg BNA

Daily Kos: How the "Doc Fix" Passed: American "Democracy"in One Act

Politico: Senate Backs One-Year Doc Fix Patch

Washington Post: House Approves Medicare "Doc Fix"

Of Note:

According to California Healthline, the Act: 

• Grants Medicare physicians a 0.5% fee increase through the end of 2014;

• Provides higher Medicare payments to hospitals in rural areas and for ambulance services in such areas;

• Establishes two new mental health grant programs, one of which would receive $60 million over four years to improve outpatient treatment for individuals with serious mental illnesses;

• Delays the deadline to implement the new ICD-10 diagnostic and procedure code sets by one year, to Oct. 1, 2015;

• Delays implementation of the new inpatient payment rule for hospitals, known as the two-midnight rule, by six months, to March 2015; and

• Implements $2 billion in payment reductions over 10 years to skilled nursing providers.