Senate Passes Jobs Bill; Extends FMAP and Physician Fee Schedule Fix and Clarifies EHR Incentive Payments - March 17, 2010

On March 10, the Senate passed the American Workers, State, and Business Relief Act of 2010, H.R. 4213. Of particular note, the bill extends the FMAP increase provided under the American Recovery and Reinvestment Act (ARRA) for an additional six months (through June 30, 2011), which will give additional support to states through the remainder of their upcoming fiscal year. The bill also narrows the definition of hospital-based physicians for the purpose of determining eligibility for electronic health record (EHR) incentive payments. The bill’s rewording should allow physicians that are providing care in provider-based clinics to receive EHR incentive payments, where such payments would not previously have been permitted. In addition, the bill includes an extension through September 31, 2010 of the physician fee schedule fix, to avoid a 21% reduction in payment rates that is slated to occur at the end of this month. It also extends a number of Medicare payment increases, including those for outpatient mental health services and ambulance services. The House is not expected to pass H.R. 4213 until after it passes health reform legislation this week, and will likely seek to make changes to the jobs bill, delaying final passage.