After aggressive AMA-led campaign, Medicare physician payment cut averted

With America's physicians and their patients calling for action, Congress on Dec. 9 passed legislation to prevent a scheduled 5 percent cut in 2007 Medicare physician payments, and instead freeze payment rates for one year.

Approved by a 367–45 vote in the House and a 79-9 vote in the Senate, the bill sets aside funds to help offset a projected payment cut in 2008. It also extends the geographic price cost index to prevent additional payment cuts for physicians in rural areas.

"Today's action provides an important but temporary reprieve for seniors and the physicians who care for them," said AMA Board Chair Cecil B. Wilson, MD. He said that while far from ideal, averting an across-the-board payment cut in a difficult legislative environment demonstrates how the collective voice of physicians and patients—through strong, coordinated advocacy by the AMA with its state, local and national specialty medical society partners—can effect positive change. Nearly 1 million patients and physicians contacted Congress to urge them to take action on this issue.

But there is more work ahead, he said.

"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," said Dr. Wilson. "Early next year, the AMA will renew discussions with our physician partners, Congress, the Administration and senior groups to develop a more permanent solution to the flawed Medicare physician payment formula."

The legislation also initiates a physician quality reporting program to begin in July 2007. Through the AMA-Convened Physician Consortium for Performance Improvement, the AMA, state and national medical specialty societies and other groups have reached consensus on 151 quality measures that are rooted in medical evidence. Dr. Wilson said the AMA will work to ensure that the Consortium’s measures continue to form the foundation of any reporting program, and that the AMA will work closely with the incoming Congress to address concerns with the current reporting framework.