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P.L. 110-275: The Medicare Improvements for Patients and Providers Act of 2008 (CRS Report for Congress)

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Release Date July 23, 2008
Report Number RL34592
Report Type Report
Authors Hinda Chaikind, Sibyl Tilson, Paulette C. Morgan, Holly Stockdale, Jim Hahn, Richard Rimkunas, Evelyne P. Baumrucker, Elicia J. Herz, Julie Stone, Gene Falk, Emilie Stoltzfus
Source Agency Congressional Research Service
Summary:

P.L. 110-275, the Medicare Improvements for Patients and Providers Act (MIPPA), is designed to avert a statutory Medicare reduction in payments for physicians and make other changes. MIPPA freezes physician fees at the June 2008 level until January 2009. In January 2009, fees will increase by 1.1%. In 2010, the statutory reduction will again apply, resulting in a 21% reduction in Medicare physician fees, according to the Congressional Budget Office (CBO). CBO estimates that the physician payments provision costs $9.4 billion (over the 2008-2010 period). Other provisions in the Act will offset these and other costs, so that in total, the provisions in MIPPA 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 provides a description of the provisions of MIPPA. MIPPA became law on July 15, 2008, after Congress overrode a presidential veto on H.R. 6331. The bill was originally passed by the House on June 24, 2008, under suspension of the rules by a vote of 355 to 59. On July 9, 2008, the Senate passed the bill without amendment by unanimous consent and the bill was cleared for the White House. On July 15, 2008, President Bush vetoed the bill. On the same day, the House voted 383-41 to override the veto, and the Senate later voted 70-26 to override the veto.