The Wall Street Journal is reporting that the bill to reverse the 10.6% cut in Medicare rates is stuck in the Senate. The House passed the bill, but some Republicans object to the cuts in the subsidy for the Medicare Advantage program. On a procedural vote yesterday, Obama voted for the bill, BTW, and McCain was absent. The bill can be taken up after the July 4th recess.
Did I mention the recess? Did I mention that the House had already adjourned, so nothing will happen now? As of Tuesday, Medicare rates drop. Thud.
Congress has reversed cuts before, and even made the them retroactive.
Get on the phone today, and next week, to pressure your representatives and senators to reverse the cuts, and put the Advantage debate into a separate bill.
What now? I wouldn’t panic yet, but I would take a look at the action plan I suggested back in the beginning of the year. You won’t see the impact of the cuts for a few weeks, but who knows what will happen when Congress returns. Conserve cash. Delaay capital expenses, and delay hiring if you possibly can, unless that person is expected to be self-supporting. If you haven’t already done so, set up a line of credit at the bank as an emergency reserce – NOT to fund operating expenses. I hope that have already held the line on personal expenses.