'Doc fix' moves on to White House

States have 'wide discretion' to cut Medicaid payments to providers, White House says

A bill that contains legislation cancelling a scheduled Medicare reimbursement cut to physicians has passed the House and Senate.

The bill, which contains a provision known as the “doc fix," is expected to be signed by President Obama.

The doc fix legislation will be paid for by cutting federal healthcare spending by approximately $21.1 billion. Part of that will come from a $6.8 billion reduction in federal payments to skilled nursing facilities and hospitals that collect bad debt, a provision that does not sit well with nursing home provider groups. 

However, the payroll tax cut bill does include an extension of the therapy caps exceptions process through Dec. 31, 2012.

Click here to read more about the healthcare provisions included in the legislation.