Fighting Medicare cuts -- for our patients' future

AMA Leader Commentary. By J. Edward Hill, MD, Nov. 21, 2005.

AMA LEADER COMMENTARY

A few words about current events in medical practice

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A message to all physicians from AMA President J. Edward Hill, MD.

Through advances in science, we have a chance to make 21st-century medicine the best in American history. Within our reach are better technology, better physician performance and higher quality care.

This is a vision that the AMA, the American people and our representatives in Congress should share.

Unfortunately, to reach these goals requires individual physicians to make new investments. All the while, at the same time, we continue to pay our staffs, run our offices and pay liability insurance premiums.

These recurring, out-of-pocket expenses, necessary to most any small business, will increase 15% by 2011, according to the government's conservative estimates.

These are the bills we have to pay just to keep our businesses up and running. And it's even harder for physicians with a lot of Medicare patients.

A main reason for this is that Congress has failed to replace the flawed formula that determines physician payments -- a formula based on the gross domestic product, which has no bearing on health care costs. And without a change to this flawed formula, physician payments for treating Medicare patients will be cut 26% over the next six years.

Two weeks ago, the U.S. Senate voted to include a 1% increase in Medicare payments in the federal budget reconciliation legislation. This increase would override the 4.4% cut scheduled for Jan. 1, 2006.

The AMA appreciates the Senate's efforts to prevent the 4.4% cut and to include a positive update, which inches Medicare closer to covering the costs of providing care. And we look forward to working with Congress to improve on this proposal.