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Senior Journal: Today's News and Information for Senior Citizens & Baby Boomers

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Medicare News

GAO Report Says Physicians Not Likely to Limit Medicare Patients if Pay is Cut

AMA says up to 45% of physicians may limit practice if Medicare cuts rates

July 24, 2006 – Just a few days ago the president of the American Medical Association was on the speaking tour and telling senior citizens that up to 45% of physicians, according to their survey, will limit their Medicare patients if Congress does not stop a 5% cut in doctor's payments scheduled by Medicare. The argument received a strong counter on Friday from a report by the Government Accountability Office that there is no evidence to expect this to happen, according to a KaiserNet.org report today.

Click here to the Daily Health Policy Report - KaiserNetwork.orgLower Medicare Payments to Doctors Do Not Decrease Access to Care, GAO Finds

Reductions in Medicare payments to physicians have not resulted in a decrease in the number of providers accepting Medicare beneficiaries or made it difficult for beneficiaries to find providers, according to a Government Accountability Office report released on Friday, Reuters/Arizona Daily Star reports (Reuters/Arizona Daily Star, 7/22).

 

Related Stories

 
 

Reduction in Medicare Reimbursement to Physicians May Limit New Patients

AMA President says 45% of doctors will limit Medicare practice

July 19, 2006 - Forty-five percent of physicians in the American Medical Association plan to decrease or stop the acceptance of new Medicare beneficiaries and TRICARE members if Congress does not act to stop a 5% decrease in Medicare physician payments that is scheduled to take effect in 2007, AMA President Jeremy Lazarus said on Tuesday, the AP/South Florida Sun-Sentinel reports. Read more...


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Since the early 1990s, some lawmakers, health policy analysts and physician groups such as the American Medical Association have raised concerns that reductions in Medicare physician payments will lead some providers to stop accepting beneficiaries as patients, CQ HealthBeat reports.

The GAO report, which was requested by Congress as part of the 2003 Medicare law, examines beneficiaries' perception of physician availability from 2000 to 2004; beneficiaries' use of physician services from 2000 to 2005; and physician supply and physician willingness to accept beneficiaries as patients from 2000 to 2005 (Carey, CQ HealthBeat, 7/21).

According to the report, which analyzes CMS data, concerns about decreased access to providers "were heightened in 2002" when Medicare physician payments were reduced 5.4% to lower spending increases. However, the report finds that no more than about 7% of beneficiaries have experienced "a major access difficulty."

In addition, the report states, "Only a small fraction -- less than 4% -- of physicians responded that they did not accept any new Medicare patients" (Washington Post, 7/22).

Overall, from April 2000 to April 2005, the percentage of beneficiaries who received physician services and the number of physician services that were provided both increased, the report finds. "These increases suggest that there was no reduction in the predominant tendency of physicians to accept Medicare patients and payments," according to the report.

AMA Response
In a response included in the report, AMA said the GAO analysis "should not be interpreted as an improvement in access," adding that the increased use of physician services could be the result of beneficiaries being sicker, more beneficiaries receiving physician services in doctors' offices rather than in hospitals or other settings, or beneficiaries' increased use of new Medicare benefits (CQ HealthBeat, 7/21).

The report is available online. Note: You must have Adobe Acrobat Reader to view the report.

"Reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”  

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