GOVERNMENT & MEDICINE

AMA delegates rally to knock out cuts in Medicare payments

The House attempted to fix the problem in 2002, but the Senate failed to act.

By Tanya Albert, AMNews staff. Jan. 6, 2003.

New Orleans -- Energized by the "Rocky" theme song and impassioned speeches, physicians at the American Medical Association's Interim Meeting in December 2002 vowed to turn up the heat on Congress to stop $11 billion in Medicare payment cuts over the next three years.

Doctors suspended House of Delegates business to rally against physician payment formula problems.

Waving green signs that said "Stop the cuts," and chanting "Fix the mistake," doctors on the house floor pulled out their cell phones and called their lawmakers to tell them that they need to fix Medicare physician reimbursement when the new Congress convenes this month.

Payment formula problems already caused a 5.4% cut in Medicare physician pay last year. At press time, the Centers for Medicare & Medicaid Services was finalizing a 2003 rule that was expected to decrease reimbursement by another 4.4%.

If Congress doesn't make changes, physicians would see their Medicare pay drop 18% over four years. That would put 2005 rates below 1991 levels. The cuts also would affect physician reimbursement for treating military retirees and active duty military families who are covered by the TRICARE program, which ties its rates to Medicare.

The reductions would exacerbate a growing access problem for patients, many doctors said. More than 40% of physicians surveyed in an AMA poll said they wouldn't sign Medicare participation agreements if pay cuts continued. The decreases in reimbursement are especially tough at a time when managed care payments are low and medical liability insurance rates are rising.

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