Sen. Debbie Stabenow (D-MI)

A congressional measure that would extend by six months a temporary increase in Medicaid assistance to states will remain part of a tax extenders bill. That will occur contrary to rumors that the provision will be introduced as a stand-alone bill, according to news reports from Washington.

Senate Democrats will continue working to strike a bargain with Senate Republicans on the tax extenders bill, which could be brought to a vote at any point, according to Sen. Debbie Stabenow (D-MI), The Hill newspaper reported. In the meantime, the bill is stagnating on the Senate floor. Many states counting on the extension could begin cutting services as soon as July 1, the first day of the fiscal year. The 6.2% federal medical assistance percentage (FMAP) increase is set to expire at the end of 2010—halfway through the fiscal year.

In other news, the Centers for Medicare & Medicaid Services on Friday proposed a rule that would affect a 6.1% cut to Medicare physician reimbursements under the Medicare Physician Fee Schedule for calendar year 2011. The proposed rule, which was published in the Federal Register, would also implement a number of provisions of the recent healthcare reform law that affect Medicare Part B.