Obama administration announces delay of burdensome new rules on doctors

By Julian Pecquet - 02/16/12 12:59 PM ET

The Obama administration on Thursday confirmed that it will give the nation's doctors more time to switch to a new insurance coding system that critics say would cost millions of dollars for little gain to patients.

The announcement comes after Marilyn Tavenner, the acting administrator of the Centers for Medicare and Medicaid Services, promised Tuesday that her agency would "re-examine the pace" at which doctors must switch to the International Classification of Diseases (ICD)-10 set of diagnosis and procedure codes. Under current law, doctors are required to use the new codes starting Oct. 1, 2013.

"ICD-10 codes are important to many positive improvements in our health care system," Health and Human Services Secretary Kathleen Sebelius said Thursday. "We have heard from many in the provider community who have concerns about the administrative burdens they face in the years ahead. We are committing to work with the provider community to reexamine the pace at which HHS and the nation implement these important improvements to our health care system."

Sebelius framed the delay as part of President Obama's commitment to reducing regulatory burden. She said HHS would announce a new date in the future.

The Obama administration says the new codes would get U.S. medical diagnostics in line with much of the rest of the world while allowing health officials to better track the nation's health and monitor diseases.

Critics — including the American Medical Association — say switching to ICD-10 coding will require doctors' offices to deal with some 68,000 codes, more than five times the current 13,000. The change, according to the AMA, would cost medical practices anywhere between $83,290 and more than $2.7 million, depending on size.

In a statement following Tavenner's earlier remarks, AMA President-elect Jeremy Lazarus was cautiously optimistic.

"The AMA appreciates that Ms. Tavenner and the administration have heard our concerns and have recognized the significant challenges and burdens ICD-10 implementation will create on the practice of medicine, and that they are committed to reviewing the pace of implementation," Lazarus said. "The AMA welcomes the opportunity to discuss ICD-10 implementation, along with many overlapping regulatory requirements that are burdening physician practices."