Tuesday, March 21, 2006

MedPAC calls for increase in Medicare rates

In more recent news by the American Medical Association, there is finally more people understanding the problem and taking steps to fix them. The following is a recent memo released by MedPAC. These are the types of issues that our AMA should be involved to change legislation.


MedPAC calls for Medicare physician payment to keep up with practice costs
Congressional action needed to stop physician payment cut

For immediate release
March 1, 2006

Statement Attributable to:
Duane Cady, MD
AMA Board Chair

"MedPAC's recommendation to update 2007 Medicare physician payments 2.8 percent based on practice costs is plain common sense, and the AMA welcomes the advice. Without Congressional intervention, Medicare payments to physicians will be cut 4.6 percent in 2007, endangering seniors' access to care.

"The AMA is gravely concerned that Medicare payment cuts will harm seniors' access to care. A national AMA survey found that 38 percent of physicians would decrease the number of new Medicare patients they accept if the first in a series of planned cuts went into effect. MedPAC's report found that some seniors may already be having a hard time finding a physician, and impending cuts are sure to make matters worse.

"With nine years of cuts totalling 34 percent now projected by Medicare, we fear more physicians will make difficult decisions about treating new Medicare patients and quality investments. Sixty-one percent of physicians told the AMA they plan to defer purchase of new medical equipment and 54 percent plan to defer purchase of information technology because of multiple years of cuts. When payments are cut year after year physicians cannot invest in technology to improve quality.

"If enacted by Congress, this new MedPAC recommendation will help physicians continue to treat Medicare patients. Every year, physicians must rely on Congress to right the wrongs in the Medicare physician payment projections. Currently, Medicare payments are inappropriately tied to the ups and downs of the economy – not the health care needs of America's seniors.

"Until the physician payment problem is permanently resolved, seniors' access to care will be repeatedly placed in jeopardy. The AMA will continue to advocate for Medicare physician payment based on practice costs so no senior will have to worry about access to care when they need a doctor."

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