AMA: Last-minute congressional action stops Medicare physician payment cut that would have threatened seniors' access to care

Nearly one million patients and physicians contacted Congress, urging action

For immediate release
December 9, 2006

Statement attributable to:
Cecil Wilson, MD
Chair, Board of Trustees

Congressional action to avert next year’s five percent Medicare physician payment cut will help avert a potential sharp decline in access for America’s seniors. The AMA sincerely appreciates the bipartisan efforts by House and Senate leaders, committee chairmen, ranking minority members and congressional staff to prevent the Medicare cut triggered by the flawed Medicare physician payment formula. This action stops next year’s cut by maintaining the current 2006 payment rate, and also sets aside funds to avert cuts in 2008. This legislation also stops additional Medicare cuts to rural physicians.

"If the 2007 Medicare cut had occurred as planned, nearly half of physicians told the AMA the cut would force them to limit the number of new Medicare patients into their practice.

"Today’s action provides an important but temporary reprieve for seniors and the physicians who care for them. The AMA renews its commitment to work with Congress, the Administration and senior groups on a more permanent solution to the flawed Medicare physician payment formula. The time is long overdue to devise a sound financing system for the Medicare program so we can avoid this annual struggle to preserve seniors’ access to care.

The legislation also initiates a physician quality reporting program, and the AMA will continue to work with the Administration and Congress on ways to improve health care quality. The AMA-convened Physician Consortium for Performance Improvement has already developed 151 quality measures, and we will work to ensure that Consortium measures continue to form the foundation of a Medicare quality reporting program. We will work closely with the incoming Congress to address concerns with the current reporting framework.

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For more information contact:

Katherine M. Hatwell
AMA Media Relations
Senior Public Information Officer
(202) 789-7419