Feds give doctors a break after Palmer bill

An Alabama congressman is praising the federal agency that oversees Medicare and Medicaid for giving doctors one year to transition to a new coding system tied to payments a month after he introduced a bill that gives doctors' offices a two-year grace period to implement the system, known as ICD-10.

In a statement, U.S. Rep. Gary Palmer, R-Hoover, said the lack of a transition period "threatened to disrupt health care for smaller practices and in rural areas," because the new system involves tens of thousands of more codes. Alabama doctors were concerned that coding errors could cause the Center for Medicare and Medicaid Services to delay or withhold payments to physicians.

"A more gradual transition to this new system will minimize disruptions in health care services for many patients in Alabama and across America," Palmer said. "I am pleased that the medical sector and Congress came together to bring concerns about patient care to the forefront, leading to this transition period."

Palmer introduced the bill, dubbed the Protecting Patients and Physicians Against Coding Act, last month. The bill had the support of the Medical Association of the State of Alabama.

"We appreciate Congressman Palmer's leadership on this issue and know his efforts weighed significantly into CMS's decision to allow an ICD-10 grace period for physicians," said Dr. Buddy Smith, the association's president. He added that the group looks "forward to working with him to further mitigate the negative effects of ICD-10 and the myriad of other unnecessary and burdensome federal mandates levied on medical practices."

The ICD-10 is an international system of codes used to diagnose medical conditions. The United States is the only country that ties the coding system to medical billing.

The transition to the new system involves training workers and using new software, which means smaller medical practices have to take time away from treating patients to become accustomed to ICD-10.

Palmer's bill has 45 cosponsors in the House. Medical industry officials said CMS announced the one-year transition period due to congressional pressure.