[FONT=Arial, Helvetica, sans-serif]Not that the current rates are favorable to anesthesiology, but 20% less would still be worse...
Yesterday's Senate Vote on S. 1776
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[FONT=Arial, Helvetica, sans-serif]To: AMA Members.
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An overwhelming majority of U.S. senators, Democrats and Republicans alike, are on record stating that the so-called Medicare sustainable growth rate (SGR) is flawed and should be replaced. S. 1776, the Medicare Physician Fair Payment Act, introduced last week by Sen. Debbie Stabenow, D-Mich., would have repealed the SGR, erasing the existing debt and freezing physician payments at current rates for 10 years. Yesterday's Senate vote (PDF) on S. 1776 was an opportunity for every senator to deliver on their pledge of support for repealing the SGR. Instead the Senate voted 53-47 to block consideration of S. 1776.
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[FONT=Arial, Helvetica, sans-serif]The blame game being spun by some politicians over the outcome of that vote should be seen for what it ispure political gamesmanship.
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[FONT=Arial, Helvetica, sans-serif]Notwithstanding all of the hard work conducted by physicians who reached out to senators of both parties, this bill was blocked for these basic reasons: .
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There is growing concern on the part of legislators and the public over expanding federal deficits. Therefore, a number of moderate Democrats and Republicans, although concerned about the SGR problem, simply would not vote for a bill they viewed as having negative deficit implications.
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[FONT=Arial, Helvetica, sans-serif]The Senate Republican leadership cast this as a test vote on Democrats' health reform legislation. .
[FONT=Arial, Helvetica, sans-serif]The problem is that another temporary fix of the SGR formula will merely exacerbate the very deficit problem that so concerns many senators. .
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[FONT=Arial, Helvetica, sans-serif]In 2005, the cost of repealing the SGR was $48 billion over ten years and physicians were facing cuts of 3.3 percent. .
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[FONT=Arial, Helvetica, sans-serif]Today, the price tag to permanently repeal the SGR is $245 billion and next year's scheduled cut is 21.5 percent. .
[FONT=Arial, Helvetica, sans-serif]The AMA shares concerns about federal deficits but we believe the responsible thing to do is to finally stop the Ponzi-like scheme to manage the SGR. Instead, Congress must once-and-for-all fulfill its obligation to senior citizens and the physicians who treat them. They can do this by wiping the slate clean and adopting a realistic baseline not predicated on physician payment cuts of 40 percent over the next several years.
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[FONT=Arial, Helvetica, sans-serif]This effort to permanently fix the SGR isn't over, but we should acknowledge a few positive developments associated with S.1776 including continuing strong support and leadership by Sen. Stabenow and active support from the AARP and the Military Officers Association of America. We also need to thank the 47 Democratic senators who voted for cloture.
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[FONT=Arial, Helvetica, sans-serif]We need to take a moment to clear up erroneous trade press reports over an Oct. 13 meeting with Sens. Reid, Baucus and Dodd and senior White House staff. At that meeting, the AMA did not agree to support a Senate bill still being drafted. While expressing our ongoing commitment to achieving meaningful health system reform goals this year, we reiterated clearly the AMA's continuing concerns with a number of provisions of the Senate Finance Committee's recommendations. These concerns have yet to be fully addressed.
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[FONT=Arial, Helvetica, sans-serif]Finally, a word about medical liability reform.
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[FONT=Arial, Helvetica, sans-serif]The AMA has been a strong and consistent advocate for medical liability reforms. As a direct result of AMA advocacy, President Obama has authorized a $25 million grant program for state pilot projects for alternative medical liability reforms. This concept was the subject of proposed Senate legislation over the past few years, but was never reported out of committee. The pilot projects would allow a broader array of alternatives than those contained in the amendment to H.R. 3200 adopted by the House Energy and Commerce Committee in July. Proposals to implement health courts and safe harbors would be eligible for grants that will be funded by the Agency for Healthcare Research and Quality (AHRQ) early next year.
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[FONT=Arial, Helvetica, sans-serif]The Oct. 21 edition of The Wall Street Journal acknowledged what many observers have long known when it stated "...tort reform is dead on arrival" in the U.S. Congress. Amendments for MICRA style caps on non-economic damages were defeated by large margins in the House of Representatives and in the Senate HELP Committee earlier this year. When Republicans controlled the Senate, House and the White House, MICRA style reforms were not enacted. At this time, there are less than 40 votes for MICRA style reforms.
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[FONT=Arial, Helvetica, sans-serif]So, moving forward, what can you expect from the AMA?
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[FONT=Arial, Helvetica, sans-serif]The AMA has advised Congress and the Obama Administration that we do not support another short-term fix that grows the SGR deficit.
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We stand by our seven essential elements for health system reform. Consideration of the House and Senate health reform bills coming up for floor votes in the coming weeks will be evaluated based on the following metrics: .
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[FONT=Arial, Helvetica, sans-serif]Does the legislation adequately address the AMA's seven essential elements of health system reform? .
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[FONT=Arial, Helvetica, sans-serif]Does the legislation correct existing failures to fulfill current obligations to patients and physicians? .
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[FONT=Arial, Helvetica, sans-serif]Are new obligations based on sound policy and financial foundations that are sustainable and will deliver on the promise of real access to care? .
[FONT=Arial, Helvetica, sans-serif]In closing, we thank state, county and national specialty societies and individual medical students, residents and physicians for their outstanding response to our grassroots campaign on S. 1776. Over 42,000 contacts to Senate offices were generated in just five days. This was a tremendous demonstration of how medicine can mobilize to support a common goal.
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[FONT=Arial, Helvetica, sans-serif]Sincerely,.
[FONT=Arial, Helvetica, sans-serif]J. James Rohack, MD, President.
[FONT=Arial, Helvetica, sans-serif]Rebecca J. Patchin, MD, Chair, Board of Trustees.