FMA: Medicare Physician Pay Cuts Deeper Than First Projected

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FMA: Medicare Physician Pay Cuts Deeper Than First Projected

The Medicare physician payment rule recently released predicts a payment cut of 5.1 percent for 2007, highlighting the need for Congress to fix the deeply flawed Medicare physician payment system. "Seniors who rely on Medicare and the physicians who care for them are stuck wondering if 2007 will be the year access to care erodes as we wait for congressional action to stop the Medicare payment cuts," said AMA Board Chair Cecil B. Wilson, MD. Dr. Wilson pointed out that Medicare has expanded the treatments it covers more than 90 times since 1999, yet under the current Medicare payment system physicians are penalized with lower payments per service the more care they provide. In fact, Medicare currently reimburses physicians about the same in 2006 as it did in 2001.

Without congressional intervention, Medicare physician payments will be slashed 37 percent over the next nine years, as practice costs increase 22 percent. Nearly half, 45 percent, of physicians tell the AMA the cuts will force them to either decrease or stop taking new Medicare patients. To keep providing high quality care to patients, Medicare must provide appropriate payments to the doctors who provide that care.

The new rule also imposes cuts on imaging services. "As advances in imaging technology increase the ability to provide quality, targeted care, more patients and physicians rely on these services," said Dr. Wilson. "It is important to look not just to the increase in use of such services, but to their ability to provide patients with healthier outcomes, such as using CT scans and MRIs to pinpoint and stage various types of cancer. Medicare must differentiate between appropriate and inappropriate imaging use and tailor its policies so that appropriate use is not punished."

All physicians and medical students are encouraged to call their U.S. representative and senators about this critical issue. Tell them to take action before the October adjournment to stop the 5.1 percent cut in Medicare physician payments for 2007 and provide a positive update that reflects practice costs, as recommended by the Medicare Payment Advisory Commission. Explain that if Congress doesn't act, the cuts will reduce access to health care for America's seniors.

Call (800) 833-6354 to be connected with your members of Congress. (Excerpt from AMA E-Voice)