Bowing to pressure from Democratic fiscal conservatives, House Democratic leaders scaled back health-related provisions in tax extenders legislation the House passed before beginning its Memorial Day recess. In the package, physicians who treat Medicare patients would see a 2.2 percent increase for the remainder of this year and a 1 percent payment increase in 2011. Extensions of COBRA subsidies and additional Medicaid funding for states were removed from the bill. The Senate could act on the package as early as June 7 when it returns from the Memorial Day break.

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