A freeze from the White House Monday prevented a 10 percent cut in pay for doctors who treat Medicare patients, allowing lawmakers up to 10 days to vote to block the cuts. The Senate was unable to agree to stop the cuts prior to the July 4th recess, forcing the Bush Administration to grant them a temporary reprieve.
However, in a letter from Senators Charles Schumer (D-NY) and Jay Rockefeller (D-WV) to Michael Leavitt, Secretary for the U.S. Department of Health and Human Services, they claim that the White House suspension is "misleading the public."
"Current law already requires that all Medicare claims submitted by physicians be withheld for 13 days prior to payment," the letter reads.
"It is our view that this Administration is misleading the public by claiming to provide a temporary hold on payment which is already authorized by law in order to give the appearance of being helpful to doctors in the Medicare program," they Senators added. The cuts were established as part of an effort to keep Medicare spending under control. Once spending exceeds a certain limit, the cuts are scheduled to take place as a sort of fail-safe. However, Congress has found ways to block the pay cuts for years.
Failing to suspend the cuts for another year could spell trouble in Washington as lawmakers up for re-election seek out the weighty senior vote. Currently, around 600,000 doctors treat Medicare patients, and Congress will likely block the cuts when they return after the Fourth of July weekend.
The White House was announced the suspension following a particularly heated debate last Thursday night that featured open yelling on the Senate floor, culminating in 59 votes for the Democratic Medicare fix, one less than the 60 needed to pass.
The American Medical Association backs the move to continue blocking the cuts.
In order to curb Medicare spending, Congressional Democrats sought to cut Medicare Advantage, which represents around 19 percent of Medicare enrollees. Reducing the Medicare Advantage funding would, Democrats argue, allow the pay cut for doctors to be put off another 18 months.
In response, the Democrats approved legislation last week that would cut funds given to Medicare Advantage, and despite a veto threat from the White House, it passed 355-59 in the House. 129 Republicans bucked the Administration to cross party lines and join the majority while only 59 voted against it.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.