Kanjorski Hails Extension of Medicare Wage Index Reclassification 
Measure Ensures $17 Million in Funding for NEPA Hospitals

WASHINGTON - The U.S. House of Representatives today passed H.R. 6111, the Omnibus Tax/OCS/Physician Payment bill, which extends the Medicare wage index reclassification for local hospitals and prevents Medicare from implementing scheduled decreased payments to physicians. Congressman Paul E. Kanjorski (PA-11) voted for the bill, which now goes to the Senate for consideration.

The Medicare Modernization Act contained a 'Section 508' provision that allowed 120 hospitals to reclassify to other wage index areas for three years, including 12 in Northeastern Pennsylvania. This provision was set to expire on March 30, 2007, but H.R. 6111 extends the reclassification until the Fiscal Year ends on Sept. 30, 2007.

Physician payments were scheduled to be cut by 5.1 percent beginning on Jan. 1, 2007. H.R. 6111 freezes Medicare payments to physicians at the current level for one year.

"Passage of this bill is a tremendous victory for physicians and Medicare patients in Northeastern Pennsylvania. Hospitals in Northeastern Pennsylvania stood to lose $34 million in Medicare payments annually if the 'Section 508' extension had not been passed. In addition, cutting physician payments would have had a potential detrimental effect on the number of Medicare patients treated by doctors," Congressman Kanjorski

said.

Jim May, president and CEO of Mercy Health Partners, was deeply appreciative of Congressman Kanjorski's support. "We faced a financial crisis without today's action. We are indebted to Congressman Kanjorski and others for their leadership. This is a first step, and we look forward to continuing to work with the Congressman until we find a permanent solution," Mr. May said.