After considerable political pressure was applied from both parties, Kentucky Senator Jim Bunning dropped his objections to a bill (HR 4691) that will temporarily delay the 21% Medicare payment cuts that were scheduled to take place March 1st. With Bunning’s objections put aside, the Senate passed the bill 78-19 and it was signed by President Obama on Tuesday.

The bill also includes a 30-day extension of COBRA health care benefits for unemployed U.S. residents.

Next on the Senate’s agenda is consideration of HR 4213, which will provide a longer extension of the provisions of HR 4691. HR 4213 would extend these benefits for the rest of 2010, but may cost upwards of $150 billion overall.

Medicare contractors had been instructed to hold claims for 10 days, which means any services provided in the first quarter of 2010 will be reimbursed at the present rate.