With its mid-December passage of the Medicare, Medicaid and SCHIP Extension Act of 2007, Congress temporarily prevented Medicare's strategic growth rate formula from cutting 2008 physician reimbursement rates, while it maintained support for the State Children's Health Insurance Program.

The California Medical Association applauded the act. However, the association "is extremely frustrated that Congress has been unable to fix the underlying problems, leaving physicians facing significant payment cuts in future years," said Richard Frankenstein, MD, CMA president.

Instead of the scheduled 10-percent reimbursement cut physicians were bracing for, the act raised rates by 0.5 percent. But both effects are only temporary. Unless lawmakers pass another bill addressing the scheduled decline in rates, the cuts go into effect on July 1. The Senate and House of Representatives passed the act on Dec. 18 and 19, respectively, and President George W. Bush signed it on Dec. 29.

Even though the Medicare rate cut was delayed, reimbursement for many services in 2008 will fall below 2007 rates, due to adjustments to the practice-expense and work relative-value units, according to the CMA. The program's geographic payment formula remains flawed, the CMA said.

The Centers for Medicare and Medicaid Services pushed back the deadline for doctors to declare their participation status to Feb. 15, and the revised 2008 Medicare physician fee schedule can be found on the NHIC Web site at www.medicarenhic.com. All status changes will be considered effective Jan. 1, 2008.