Medicare Compliance & Reimbursement

In a statement posted on the American Medical Association (AMA) Web site, J. James Rohack, MD, President, AMA said the U.S. Senate had voted once again on March 2 to delay the 21 percent Medicare physician payment cut by a month, postponing it to April 1. "The Senate should use this time to permanently repeal the flawed Medicare physician payment formula that puts access to care for seniors and military families at risk," the Web site quoted Rohack.

"Physicians," Rohack was further quoted, "are outraged by the Senate's failure to act before the March 1 deadline, as their patients and practices are hurt by the continued instability in the Medicare system." A vicious cycle of short-term delays in place is increasing the size of the cut at present and Americans are paying dearly for the cost of Medicare reforms. One law that permanently repeals the broken payment formula, replacing it with a better one, has already been passed by the U.S. House, Rohack further said in his statement.

Given the present Medicare scenario, Rohack said, "access to healthcare for seniors, disabled and military families hangs in the balance. The Senate must honor its obligation before patients are the victim of a complete Medicare meltdown."

On March 5, Rohack called on senators to use this buffer period of a month for permanently repealing the broken Medicare physician payment formula. In the letter to the Senate, Rohack said that AMA, "cannot support proposals that aim to address only the most imminent threat to payment levels and patient access, with no regard for the future of the Medicare and TRICARE programs. We are opposed to further short-term patches of any duration."

According to Rohack, once the proposed 21 percent cuts come into force, physicians will find the continued unreliability in the system forcing them to: (i) treat a lesser number of Medicare patients; (ii) cut costs by reducing staff; and (iii) make other tough business decisions. "Permanent repeal of the broken payment formula is the way to ensure security and stability in the Medicare program for seniors who rely on it now, and the baby boomers who begin turning 65 next year," the AMA letter further said.

The letter also said that it was time the Congress took steps to stop this growing threat to Medicare and TRICARE and made moves immediately to repeal the sustain able growth rate (SGR) formula by, "replacing it with a system that ensures payments keep pace with the rising costs of the care Medicare beneficiaries and military families need and deserve,"

(Editor's note: Read the Medicare Physician Cut post at: www.ama-assn.org/ama/pub/news/news/senate-delaysmedicare-cut.shtml; and the AMA Letter To The Senate article at: www.ama-assn.org/ama/pub/news/news/medicare-letter-senate.shtml. Read the full text of AMA president, J. James Rohack's letter to the U.S. Senate at: www.ama-assn.org/ama1/pub/upload/mm/399/sgr-letter-hr4691.pdf.)