“Doc Fix” Signed into Law; 21% Physician Pay Cut Avoided

April 20, 2015 | By Lawrence J. Tabas

President Obama has signed the “doc fix” into law, which permanently avoids a 21% pay cut for physicians that was slated to take effect this April. The law received broad bipartisan support, passing in the House of Representatives by a sweeping vote of 392-37 and passing in the Senate by a vote of 92-8.  

The law attempts to bring long-term stability to the Medicare physician fee schedule. From 2015-2019, physicians will receive an annual increase of 0.5%. The 2019 rates will then remain constant through 2025. In 2026 and beyond, depending on participation in alternative payment models, certain physicians may be eligible to receive annual increases of 0.75%, while others will receive increases of .25%. See our previous blog post here for additional details.

According to CMS, a small number of claims will be processed at the reduced rate, but these claims will be automatically reprocessed with the new payment rate, and no action is necessary from providers.

Check back with the Health Law Gurus™ for updates on the impact of this new law.

Categorized In: Legislation, Medicare

About the Authors

Lawrence J. Tabas


Lawrence is the Chair for Obermayer’s Health Care Law Department and Election Law Practice Group. Lawrence’s Health Care Law legal experience includes the representation of Pennsylvania County governments in Behavioral Health Managed...

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