For immediate release
November 1, 2006
Statement attributable to:
Cecil B. Wilson, MD
AMA Board Chair
"Today's release of the Medicare physician payment rule serves as a harsh reminder of the need for congressional action to stop next year's Medicare physician payment cut due to the flawed payment formula. For the last five years, Medicare physician payments have failed to reflect the government's own measure of annual increases in medical practice costs, with current payments about what they were in 2001. For nearly half of physicians, the 2007 Medicare payment cuts will range from 6 to 20 percent because of additional payment policy changes.*
"We agree that the increases in payments for physician office visits are important, but the overall physician payment cut due to the flawed payment formula will negate any overall payment increase for primary care physicians. The rule indicates that family physicians will have an average net payment change of zero and internists face a net cut of one percent."
"Physicians are left with choices they do not want to make: Nearly half of physicians tell the AMA they will be forced to reduce the number of new Medicare patients they treat. And because TRICARE rates are tied to Medicare payment rates, military families will also be affected by the cuts with reduced access to care. The cuts are also forcing physicians to make other hard decisions like reducing staff and postponing investments in health information technology and new medical equipment.
"The AMA is deeply disappointed that once again CMS has declined to take administrative actions within their power to lessen the severity of the Medicare cut, such as removing physician-administered drugs from the flawed Medicare physician payment formula.
"America's Medicare patients and the physicians who care for them are running out of time, with only two months left until Medicare cuts begin on January 1. Eighty Senators and 265 Representatives have sent letters to the congressional leadership calling for action this Congress. Congress must act during the upcoming lame-duck session to stop the cuts and provide payments that reflect practice costs, so seniors can continue to receive high quality health care."
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*Additional changes that negatively impact 2007 physician payments include:
CMS rule on the 5-year review of payments for physician work produces a negative 5 percent budget neutrality adjustment
- Revised methodology for determining practice expense payments
- Expiration of Medicare Modernization Act’s three-year increase in geographic payment adjustments (GPCIs)
- Deficit Reduction Act (DRA) cuts for imaging services provided by physicians
For more information, please contact:
Katherine M. Hatwell
Senior Public Information Officer
AMA Media Relations
(202) 789-7419
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