The approximately $1 billion cost of the one-month patch is funded through changes to the multiple procedure payment reduction policy for therapy services.  In the CY 2011 Physician Fee Schedule Final Rule, CMS finalized a proposal to reduce by 25 percent the practice component of the second and subsequent therapy services furnished by a provider to the same beneficiary on the same date.  The one-month patch actually would reduce the scheduled reduction in the practice component from 25 percent to 20 percent for multiple therapy procedures.  However, it also would remove the budget neutrality provision in the regulation, meaning the budgetary savings would be available to pay for the one-month patch rather than reallocated to other components of the physician fee schedule.

While the offset in the one-month SGR legislation is not targeted at radiation therapy, there is concern about potential cuts to radiation therapy in the subsequent one-year SGR extension that Congress may take up after Thanksgiving.  While the bill that has been introduced does not include offsets, we understand such offsets are under development.  ACRO is discussing this issue with the relevant authorizing committees in Congress and will continue to keep you updated on this issue.