WASHINGTON – The House of Representatives has passed, by a vote of 243 to 183, the Medicare Physician Payment Reform Act, which permanently repeals a 21 percent fee reduction scheduled for January 2010 and replaces the physician payment formula with a more stable system.

The bill now awaits Senate action.

“Strengthening Medicare for generations to come is essential to our efforts to reforming healthcare for all Americans,” said House Speaker Nancy Pelosi (D-Calif.). “This legislation will permanently improve the way Medicare pays physicians and, in doing so, guarantee that America’s seniors will continue to have access to excellent care through Medicare.”

Backed by the American Medical Association, AARP, Medical Group Management Association, American Academy of Family Physicians and Military Officers Association of America, the legislation is designed to protect seniors’ and military families’ access to a doctor, promotes primary care and offers incentives for doctors to provide patients with higher quality and more efficient care.

“This vote is the first step toward creating a more stable and predictable reimbursement system benefiting both Medicare physician providers and beneficiaries,” said William F. Jessee, MD, president and CEO of the MGMA. “It is time for the Senate to follow suit.”

“Seniors who rely on Medicare now and the baby boomers who reach age 65 in less than two years expect access to care and choice of physician,” said James Rohack, MD, president of the AMA. “The House recognizes that the best way to achieve access and choice for patients is to repeal the broken physician payment formula. The House also acted on behalf of military families whose health care is at risk, as TRICARE ties its payment rates to Medicare.”

“By replacing the flawed formula on which Medicare physician payment is now based with a system that more appropriately pays for patient evaluation and management services, HR 3961 promotes comprehensive, coordinated care that’s been shown to improve patients’ health and help rein in costs,” said Lori Heim, MD, president of the American Academy of Family Physicians.