On Tuesday, November, 1, 2011, the U.S. Department of Health and Human Services (DHHS) issued a rule which would result in a 27.4% Medicare physician payment reduction starting in 2012.  The reduction amount is slightly less than the 29.5% cut the administration previously anticipated. DHHS Secretary Kathleen Sebelius issued a written statement reflecting the Obama administration’s position calling for a repeal of the statutorily-prescribed payment formula that mandates the size of the payment decrease. The Medicare physician payment formula, known as the “Sustainable Growth Rate,” stems from a provision in the Balanced Budget Act of 1997. Congress has continuously delayed the imposition of the cutback by short-term postponements; but an administration-desired permanent statutory fix has not been reachable in the current battles over budgetary shortfalls.  The potential imposition of the steep reimbursement cutback has raised fears of physician withdrawal from the Medicare program, with a resultant lack of access to care for Medicare beneficiaries.