CAPITOL HILL REPORT: take action to delay upcoming medicare payment cuts
March 22, 2021
Urge Congress to Further Delay Medicare Payment Cuts
Since 2011, Medicare payments have been subject to a two-percent across-the-board reduction, known as the Medicare sequester. The sequester is required by the Budget Control Act, and was originally intended to incentivize policymakers to find alternative ways to save money. Last year, Congress acted twice to avert this cut for a period of time to alleviate some of the financial pressures placed on medical practices by the COVID-19 pandemic. Unfortunately, this delay is set to expire on March 31, 2021. Additionally, the sequester is expected to increase from two percent to four percent in 2022 unless Congress intervenes.
According to a recent AMA study, neurology suffered a 20 percent reduction in Medicare Physician Fee Schedule spending from January to June 2020. Neurology practices are still working to recoup these losses and must not be subject to additional payment reductions.
The AAN has joined the medical community in advocating for Congress to extend the delay for the Medicare sequester through the duration of the COVID-19 public health emergency and ensure the sequester does not grow in 2022. Last week, the House of Representatives approved H.R. 1868, which would do just that, but now this bill awaits Senate action. A similar bill, S. 748, Medicare Sequester Relief Act, was recently proposed by Sens. Jeanne Shaheen (D-NH) and Susan Collins (R-ME). As the March 31 deadline quickly approaches, please urge your senators to support taking action to avoid further challenges for physician practices across the country.
Record-breaking COVID Relief Legislation Signed
On March 11, the American Rescue Plan Act of 2021 was signed into law, providing $1.9 trillion in additional COVID-19 relief that will influence nearly all sectors of the American economy. For health care, the impacts will be far-reaching, including providing additional resources to combat the pandemic, additional provider relief, expanding health care coverage at reduced costs to consumers, and addressing health care disparities. Key highlights include:
- $8.5 billion in new Provider Relief Funds specifically targeted at rural providers enrolled in Medicare, Medicaid, and CHIP to compensate for COVID-related expenses and losses
- $75 billion for vaccine efforts and COVID-19 testing, contact tracing, and mitigation activities
- Expanded health insurance coverage and affordability through providing temporary federal assistance for COBRA premiums, temporarily extending ACA premium tax credits to individuals making more than 400 percent of the federal poverty line (FPL), $35 billion in ACA marketplace premium assistance, and offering incentives for states that have not yet extended their Medicaid programs
- Significant funding for various public health workforce programs
- Increased funding to waive copays for veterans during the pandemic and to provide support to veterans, including COVID-19 vaccine distribution, expanded mental health care, enhanced telehealth coverage
- $80 million for substance abuse, mental, and behavioral health training for physicians and other health care professionals, $40 million to promote health care provider mental health, and $20 million for an education and awareness campaign related to these issues
- $15 billion in new funding for Targeted Economic Injury Disaster Loan (EIDL) Grants
AAN Co-hosts Congressional Briefing on Neurodevelopmental Disorders
Last week, the AAN co-hosted a virtual briefing with the Congressional Neuroscience Caucus aimed at educating Capitol Hill staff on the critical need to improve our understanding of what causes neurodevelopmental disorders and sharing new approaches for treatment and prevention.
AAN member Bhooma Aravamuthan, MD, PhD, associate professor of neurology at Washington University, joined a distinguished panel of speakers for this briefing to discuss the importance of Cerebral Palsy research. Aravamuthan also serves as vice chair of the Adults with Intellectual and Developmental Disabilities AAN Section. The event was co-hosted by the American Brain Coalition, Autism Speaks, Cerebral Palsy Research Network, and the Society for Neuroscience.
Watch a recording of this briefing here.
New AAN Study Examines Increases in Payments for Neurology Drugs
The AAN published the study “Five-Year Trends in Payments for Neurologist-Prescribed Drugs in Medicare Part D” in the March 10, 2021, online issue of Neurology®.
The study’s objective was to determine whether there was an increase in payments for neurologist-prescribed drugs. Researchers looked at data on Medicare Part D prescription claims from 2013‒2017.
The study shows a dramatic increase in the prices of neurologic medications over five years compared to the number of claims, and the increase remained large even after adjusting for inflation. Yearly total Medicare Part D payments for neurologic medications increased from $4 billion in 2013 to $6 billion in 2017. That is an increase of 50 percent while the number of claims only increased by eight percent.
The rise in cost of some drugs must stabilize or be reversed. The most effective solution would be to find ways to control the price of drugs. Neuroimmunology drugs for multiple sclerosis are the best place to start.