CMS eyes physician payments but focuses on other problems

Concerns over Medicare managed care, prescription drugs and legislation occupy front burner.

By Markian Hawryluk, AMNews staff. Sept. 24, 2001.

It's just too early for Medicare officials to worry about the physician payment update.

Facing a number of high-profile legal setbacks, the Centers for Medicare & Medicaid Services is focusing on salvaging its managed care program, making prescription drugs more affordable for seniors, and passing legislation to reform the Medicare program, leaving a possible cut in physician payments aside until final economic data are available.

Speaking to reporters on the payment update and other Medicare issues, CMS Administrator Tom Scully expressed concern over the possibility of a negative update of Medicare physician payments in 2002, but cautioned it was still too early to know how payment would be affected next year.

"I am concerned and I've looked at it extensively," Scully said. "At this point, I can tell you nobody knows what the update is going to be next year."

Scully said once the update for 2002 is determined, the agency would consider whether any action is needed.

"It's certainly something we're focused on, and if it needs regulatory or legislative relief, as soon as we're certain we're there, we'll talk it over," Scully said.

The AMA believes that it is likely to happen.

An Association estimate of the economic data indicates that physicians could be looking at cuts of 2% to 3% in 2002.

AMA officials have warned that a payment cut could be the final straw for many physicians already unhappy with the program's extensive regulations and could intensify the trickle of physicians already declining to accept new Medicare patients. [...]