The House Votes to Repeal the 3% Withhold Law
November 3, 2011 – On Thursday, October 27, the House passed a bill by 405-16 to rescind the yet-to-be implemented 3% Medicare withholding rule. Health care organizations had actively encouraged Congress to either repeal the law entirely or, at a minimum, repeal the law as it relates to Medicare payments.
Under the proposed law, CMS would be required to withhold the 3% on Medicare payments in excess of $10,000 and would apply the withhold on a payment-by-payment basis. Thus, if a government entity makes a single payment of $10,000 or more on multiple items or services, the entity must withhold the 3% of the payment.
Â
The bill to repeal the 3% withhold along with a bill to offset the costs of the repeal will be combined and sent to the Senate for a vote.
