Congress has yet to resolve paying for the “doctor fix” (SGR) and as a result, CMS sent notifications to physicians to hold back claims for 10 days in early January to allow Congress more time to resolve the issue.

 A one year fix would cost approximately 20 billion dollars, but the Senate passed a more modest two month extension that will be rejected by House Republicans today.

 Should Congress not resolve the SGR issue this week, physicians would see a 28 percent cut in Medicare payments – probably in late January or early February. 

 The Obama Administration is preparing its new budget for Fiscal Year 2013, which will be released in early February of 2012. 

 While no details have been leaked yet, expect that the Administration will resort to large budget savings measures, including cuts to Medicaid in some form – whether it be the elimination of provider taxes, a “blended rate” approach that was discussed with Republicans during the “Super Committee” process, or other cost cutting measures.

 Nursing home owners and operators should be ready to engage actively with Congress over the coming months as budget cutting is sure to continue.

Please stay tuned for more details.