Number: RS22904
Title: Summary of Major Provisions in P.L. 110-275: Medicare Improvements for Patients and Providers Act of 2008
Authors: Hinda Chaikind, Jim Hahn, Paulette C. Morgan, and Jennifer O'Sullivan, Domestic Social Policy Division 
Abstract: P.L. 110-275, the Medicare Improvements for Patients and Providers Act (MPPA) became law on July 15, 2008, after Congress overrode a presidential veto on H.R. 6331. The Act is designed to avert a statutory Medicare reduction in payments for physicians and make other changes. The bill freezes physician fees at the June 2008 level until January 2009. In January 2009, fees will increase by 1.1%. In 2010, fees will revert back to current law levels, resulting in a 21% reduction in Medicare physician payments, according to the Congressional Budget Office (CBO). CBO estimates that the physician payments provision cost $9.7 billion (over the 2008-2010 period). Other provisions in the bill will offset these and other costs, so that in total, the provisions in MPPA will reduce deficits (or increase surpluses) by an estimated $0.1 billion over the 2008-2013 period and by less than an estimated $50 million over the 2008-2018 period. The main source for these offsets comes from reductions in spending for (1) the Medicare Advantage program and (2) the physician assistance and quality initiative (PAQI) fund. The Act also makes further changes to Medicare, Medicaid, and other programs under the Social Security Act. This report focuses on the major provisions of MPPA, with the most significant budgetary impacts.
Pages: 5
Date: July 17, 2008