House Passes Health Package

President Obama put a similar tax credit eligibility provision in a budget proposal.

Black noted in a statement that many federal public assistance programs already take Social Security benefits into account when making eligibility decisions.

The current PPACA income definition “would allow some middle class Americans to qualify for Medicaid—a program meant to help those most in need,” Black said. “With the MAGI policy set to take effect in 2014, there is time to prevent these improper payments before taxpayer dollars are spent.”

The American Medical Association, Chicago, has expressed strong support for H.R. 674 because of the 3% withholding tax repeal provision in that bill.

Congress enacted the 3% withholding requirement in 2006, because of concerns that some government contractors were failing to pay enough income taxes. The requirement is now set to take effect Jan. 1, 2012.

Dr. Peter Carmel, the AMA president, said in a statement that applying the 3% withholding rule to doctors who treat Medicare patients would be untenable.

Medicare already pays 20% less the doctors really need to cover the cost of treating Medicare plan enrollees, and the government is set to impose a 30% Medicare reimbursement cut Jan. 1, 2012, Carmel said.

“The AMA is pleased that the House passed H.R. 674 and repealed the 3% withholding provision, and we urge the Senate to pass this legislation quickly,” Carmel said.

Most observers expect Congress to proceed as it has in the past and pass a measure temporarily postponing Medicare provider reimbursement cuts.

Congress could do more to stabilize Medicare by coming up with a long-term Medicare physician payment strategy, Carmel said.