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Medicare News

Senior Citizens, Military Families May Find Doctors Refusing Service as Medicare Pay Shrinks 21%

Military families are also hurt by March 1 reduction as TRICARE ties its payment rates to Medicare

March 2, 2010 - The U.S. Senate’s failure to act before the 21 percent Medicare physician payment cut went into effect yesterday has put seniors at grave risk of reduced access to health care and choice of physician, according a news release from the American Medical Association.

 

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“The Senate had over a year to repeal the flawed formula that causes the annual payment cut and instead they abandoned America’s seniors, making them collateral damage to their procedural games,” said AMA President J. James Rohack, M.D. 

“Physicians are outraged because the cut, combined with the continued instability in the system, will force them to make difficult practice changes including limiting the number of Medicare patients they can treat.”

Physicians from across the nation are in Washington, D.C. this week for the AMA’s National Advocacy Conference and will meet directly with their senators to tell them it is urgent that they permanently repeal the flawed Medicare physician payment formula and replace it with one that reflects the increased cost of caring for patients.  

“The AMA is hearing directly from physicians, and seniors should be very concerned about how the Senate’s inaction will impact their ability to see a doctor,” said Dr. Rohack.

“Military families are also hurt as TRICARE ties its payment rates to Medicare.”

On March 1, doctors all across the U.S. took a 21 percent reduction in the amount they are paid for treating Medicare and TRICARE beneficiaries. Efforts by Democrats to correct this mandated reduction has been blocked by Republicans. Physicians, meanwhile, are talking of reducing services to senior citizens on Medicare unless the pay cut is reversed.

The Associated Press reports today that "the Obama administration directed Medicare billing contractors to hold off processing claims for 10 business days" in the hopes that senators will break the deadlock. 

"Medicare normally takes 14 days to pay doctors, so there would be no reduction in reimbursement if lawmakers move quickly," the AP reports. 

Groups like the American Medical Association have become highly critical of lawmakers for what they term "playing games" with people's care.

"Funding to temporarily stave off the cuts was part of a bill passed last week by the House. But the Senate failed to act on the one-month fix." (See today's related Daily Report coverage regarding Senate action.)

Congress routinely passes bills aimed at staving off the payment reduction since lawmakers directed such a move in a deficit reduction bill in the 1990s (Alonso-Zaldivar, 3/1).

The Palm Beach Post: Doctors in South Florida continued to treat patients normally on Monday but said that they would have to stop if the Medicare cuts are not reversed.

"At Boca Raton Community Hospital, cardiologist Dr. Stephen Babic said doctors have planned a protest of the Medicare cuts for Wednesday. 'Doctors are working today and they don't know what they are going to be paid,' Babic said. 'All the doctors here are saying if you cut us 20 percent we can't make payroll, we can't pay our overhead, we can't keep the doors open.'"

Doctors in South Florida are laying workers off because of lower reimbursement rates from Medicare and what they say are fewer patients coming to see them. In addition, some said "cardiologists were especially hard hit because in January, Medicare cut what it paid for certain diagnostic tests like echocardiograms" (Singer, 3/1).

Obama Budget Has Money for Physicians

President Obama's fiscal 2011 budget requests  $3.8 trillion to protect physicians from Medicare pay cuts and extend enhanced federal support for state Medicaid programs.

Obama's proposal, unveiled Feb. 1, sets aside $371 billion over a decade to pay for the cost of preventing Medicare pay cuts under the sustainable growth rate formula. But the funding would only be enough to turn annual reductions into rate freezes, not to fund pay raises, according to a report by the American Medical News..

Also, the president left the specifics of how to prevent the cuts up to Congress,  Jonathan Blum, director of the Centers for Medicare & Medicaid Services Center for Medicare Management, told the newspaper.

"There's lots of different ways to reform physician payment in the long term," Blum said. Health and Human Services Secretary Kathleen Sebelius said she was confident Congress would prevent the cuts, which are scheduled to begin with a 21.2% reduction on March 1.

AMA President Rohack said the AMA "commends President Obama for recognizing that permanent reform is crucial to preserving physician care for current and future seniors who rely on Medicare." The AMA has urged Congress to pass a long-term overhaul that results in cost-based physician rate increases, not freezes.

Parts of this information was reprinted from kaiserhealthnews.org with permission from the Henry J. Kaiser Family Foundation. You can view the entire Kaiser Daily Health Policy Report, search the archives and sign up for email delivery. © Henry J. Kaiser Family Foundation. All rights reserved.

 

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