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ACOFP Urges Member Action on Medicare Physician Payment Reform
For the past eight months the ACOFP has taken great effort to inform and educate you about the continued problems facing our profession as a result of the flawed Medicare physician payment formula. Today, I write to solicit your immediate assistance.
Unless Congress acts, Medicare physician payment rates will be cut by 4.3 percent on January 1, 2006.
If this cut is imposed, Medicare rates will fall 16 percent below the governments' measure of inflation in medical practice costs from 2002-2006. If the projected cuts are implemented, the average physician payment rate will be less in 2006 than it was in 2001.
In 2002, physician payments were cut by 5.4 percent. Congress acted to avert payment reductions in 2003, 2004, and 2005, replacing projected cuts of approximately 5 percent with increases of 1.6 percent in 2003 and 1.5 percent in 2004 and 2005. Even with these increases, physician payments fell further behind medical practice costs. Practice costs increases from 2002 through 2005 were about two times the amount of payment increases.
Physicians are the only Medicare provider subjected to the flawed Sustainable Growth Rate (SGR) formula. The SGR is tied to the gross domestic product (GDP) and other flawed methodologies. It produces negative updates based upon economic factors not the health care needs of Medicare beneficiaries or, more importantly, physicians costs of providing care. The 2005 Medicare Trustee Report projected cuts of approximately 4.5 percent per year in physician payments through 2012.
Physicians are the only Medicare providers that do not receive positive updates based upon a formula that reflects increases in their practice costs. Every Medicare provider, except physicians, receives annual positive updates based upon increases in practice costs. In 2006, other Medicare providers will receive the following positive updates: Hospitals 3.7 percent, Medicare Advantage Plans 4.8 percent, Nursing Homes 3.1 percent, and Home Health Providers 2.5 percent.
Additional cuts in Medicare physician payments likely decrease Medicare beneficiaries ability to access to physician services. Osteopathic physicians from across the country have told us that future cuts will hamper their ability to continue providing services to Medicare beneficiaries. Experts agree. According to a survey conducted by the Medicare Payment Advisory Commission (MedPAC) earlier this year, 22 percent of Medicare beneficiaries have reported having difficulties obtaining an appointment with a primary care physician. Twenty-seven percent reported delays in getting an appointment. These problems will only increase if additional cuts are implemented. Additionally, reduced payments may prevent your ability to implement new technologies in your practice.
Physician payments should reflect increases in practice costs. In its 2005 March Report to Congress, MedPAC stated that payments for physicians in 2006 should be increased 2.7 percent. Since 2001, MedPAC has recommended that the flawed SGR formula be replaced by a formula based upon increases in physician practice costs minus a productivity adjustment, which would produce annual updates equal to the Medicare Medical Economic Index (MEI).
We need your help. I urge you to contact your United States Senators and Representative today. Tell them that Congress must act to prevent additional cuts in Medicare physician payments. Ideally, Congress should replace the flawed Medicare physician payment formula with one that accurately reflects the costs of providing care to your patients.
Please follow this link to write your Members of Congress. http://capwiz.com/aoa-aoia/issues/a...8048316&type=CO
Simply insert your zip code and complete the information requested. In a few short minutes, you can send a letter to your Members of Congress expressing your support for reform of the Medicare physician payment formula.
Thank you for your attention to this request. Your positive action will benefit your Medicare patients, your practice, and the practices of your colleagues.
--------------------------------------------------------------------------------
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--------------------------------------------------------------------------------
330 East Algonquin Road Suite 1
Arlington Heights, Illinois 60005
Phone: 800-323-0794 Fax: 847-228-9755
www.acofp.org
Contact: [email protected]
For the past eight months the ACOFP has taken great effort to inform and educate you about the continued problems facing our profession as a result of the flawed Medicare physician payment formula. Today, I write to solicit your immediate assistance.
Unless Congress acts, Medicare physician payment rates will be cut by 4.3 percent on January 1, 2006.
If this cut is imposed, Medicare rates will fall 16 percent below the governments' measure of inflation in medical practice costs from 2002-2006. If the projected cuts are implemented, the average physician payment rate will be less in 2006 than it was in 2001.
In 2002, physician payments were cut by 5.4 percent. Congress acted to avert payment reductions in 2003, 2004, and 2005, replacing projected cuts of approximately 5 percent with increases of 1.6 percent in 2003 and 1.5 percent in 2004 and 2005. Even with these increases, physician payments fell further behind medical practice costs. Practice costs increases from 2002 through 2005 were about two times the amount of payment increases.
Physicians are the only Medicare provider subjected to the flawed Sustainable Growth Rate (SGR) formula. The SGR is tied to the gross domestic product (GDP) and other flawed methodologies. It produces negative updates based upon economic factors not the health care needs of Medicare beneficiaries or, more importantly, physicians costs of providing care. The 2005 Medicare Trustee Report projected cuts of approximately 4.5 percent per year in physician payments through 2012.
Physicians are the only Medicare providers that do not receive positive updates based upon a formula that reflects increases in their practice costs. Every Medicare provider, except physicians, receives annual positive updates based upon increases in practice costs. In 2006, other Medicare providers will receive the following positive updates: Hospitals 3.7 percent, Medicare Advantage Plans 4.8 percent, Nursing Homes 3.1 percent, and Home Health Providers 2.5 percent.
Additional cuts in Medicare physician payments likely decrease Medicare beneficiaries ability to access to physician services. Osteopathic physicians from across the country have told us that future cuts will hamper their ability to continue providing services to Medicare beneficiaries. Experts agree. According to a survey conducted by the Medicare Payment Advisory Commission (MedPAC) earlier this year, 22 percent of Medicare beneficiaries have reported having difficulties obtaining an appointment with a primary care physician. Twenty-seven percent reported delays in getting an appointment. These problems will only increase if additional cuts are implemented. Additionally, reduced payments may prevent your ability to implement new technologies in your practice.
Physician payments should reflect increases in practice costs. In its 2005 March Report to Congress, MedPAC stated that payments for physicians in 2006 should be increased 2.7 percent. Since 2001, MedPAC has recommended that the flawed SGR formula be replaced by a formula based upon increases in physician practice costs minus a productivity adjustment, which would produce annual updates equal to the Medicare Medical Economic Index (MEI).
We need your help. I urge you to contact your United States Senators and Representative today. Tell them that Congress must act to prevent additional cuts in Medicare physician payments. Ideally, Congress should replace the flawed Medicare physician payment formula with one that accurately reflects the costs of providing care to your patients.
Please follow this link to write your Members of Congress. http://capwiz.com/aoa-aoia/issues/a...8048316&type=CO
Simply insert your zip code and complete the information requested. In a few short minutes, you can send a letter to your Members of Congress expressing your support for reform of the Medicare physician payment formula.
Thank you for your attention to this request. Your positive action will benefit your Medicare patients, your practice, and the practices of your colleagues.
--------------------------------------------------------------------------------
If the graphics are not appearing on your e-mail follow this link to view with graphics:
http://www.acofp.org/email/leg092205.htm
<AOL User, copy and paste into your browser search bar>
If you are an AOL User and can not see the graphics, upgrade to AOL 9.0 and your e-mails will show graphics.
Copy and paste this URL into your search browser for a free AOL 9.0 download
http://free.aol.com/tryaolfree/cdt.adp?139331
If your e-mail changes, be sure to e-mail Member Services or by calling 800-323-0794 so you can continue to receive your electronic monthly eBulletin.
--------------------------------------------------------------------------------
330 East Algonquin Road Suite 1
Arlington Heights, Illinois 60005
Phone: 800-323-0794 Fax: 847-228-9755
www.acofp.org
Contact: [email protected]
