The Bush administration has announced that it will hold off processing new Medicare claims from physicians to give Congress more time to avert deep cuts in doctors’ payments set to take effect Tuesday.

The move comes after Congress adjourned for its one-week July Fourth recess without clearing legislation to negate a scheduled 10.6 percent cut in the Medicare physician payments.

Senate Republicans blocked Democrats — for the second time — from passing a bill that would have erased the cut and provided doctors a small increase in their fees instead.

In a notice to Congress sent late June 27, the Centers for Medicare and Medicaid Services (CMS) said it would not apply the cut in physicians’ fees immediately, instead holding doctors’ claims for 10 business days.This would give Congress until July 15 to pass a bill. Doctors have warned that if their fees are cut, they will see fewer Medicare patients.

Some Republicans and President Bush object to the bill because it would pay for the fee relief by trimming payments to private insurers who offer Medicare Advantage plans.

Rather than negotiate with Republicans on compromise legislation, Senate Majority Leader Harry Reid, D-Nev., is hoping that doctors’ groups like the powerful American Medical Association can pressure vulnerable Republicans over the recess.

The bill failed to clear the Senate last week by a single vote. Under an agreement between the parties, it needed 60 votes.

Even if the Senate can find one more vote to send the bill to Bush, he has vowed to veto it. Given the stakes, a compromise is likely at some point.

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