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Physicians: Medicare pay cuts could threaten doctor choice

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Physicians said medicare payment cuts could jeopardize doctor's choice.

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St. Louis Metropolitan Medical Society

www.simms.org

American Medical Association

www.ama.assn.org

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David O. Barbe,a physician from Mountain Grove, Mo., and a member of the American Medical Association (AMA) board of trustees.

The specter of possible 21 percent cuts in Medicare payments to physicians could mean that more Missourians may not be able to choose the doctor they want.

And physicians and representatives from local medical organizations worry that the cuts could also mean the job losses.

The cuts could begin March 1 if the U.S. Senate doesn’t take action on legislation to provide a temporary reprieve or permanently change the formula that governs physician payments.

“We believe that there will be many physicians who simply will quit accepting Medicare patients,” said David O. Barbe, a physician from Mountain Grove, Mo., and a member of the American Medical Association (AMA) board of trustees. “That’s a tragedy for patients to not have access to the doctors they need.”

Barbe and other medical association officials said Tuesday that the possible cuts—the largest decrease in the history of the Medicare program—pose major problems for seniors, military families and baby boomers.

Since Medicare rates are used by TRICARE—the government’s health program of military families and veterans—care for veterans and their families may be jeopardized, he said.

There are an estimated 869,941 Medicare patients and 153, 311 TRICARE patients in Missouri.

In the last eight years, Medicare rates have been flat, but medical practice costs are up by more than 20 percent, AMA officials say.

The situation also comes at a time when Medicare enrollment will grow from 44 million in 2011 to 50 million by 2016. The leading edge of baby boomers will start enrolling in Medicare in 2011.

Proposed payment cuts to physicians have been averted in recent years by Congressional action. But delays in changing the mechanism for making payments—called the “Sustained Growth Rate” or SGR—have prompted physicians to strongly push for a permanent solution.

“We don’t want it fixed temporarily, we want a permanent fix,” Barbe said. If nothing is done permanently costs may continue to rise. “The concept of a perfect storm is way overused but the bigger the cliff, the more significant the impact is going to be if it’s not fixed,” he said.

A House bill passed late last year can provide a framework for a solution, Barbe said. “This is not a bad bill,” he said.

The logjam in the Senate, however, has prompted the AMA and other associations, such as the St. Louis Metropolitan Medical Society, and the Missouri State Medical Association to publicize their concerns.

Barbe and other representatives note that the reduced payments may also prompt older physicians to retire or reduce their patient loads.

Thomas A. Watters, executive vice president of the St. Louis Metropolitan Medical Society, said the issues surrounding Medicare may be one more issue that persuades young doctors not to become primary care physicians.

The expense and business issues involved may prompt more to become specialize,” said Watters, whose organizations represents about 1,600 physicians locally.

AMA official say 40 percent of Missouri’s practicing physicians are over age 50, an age when many are considering reducing their practices.

Also at stake may be some of more than 50,000 employees of physicians. Layoffs may be a possibility if payments are cut, Watters said.

Comments

ehe1433 (anonymous) says...

This ‘news’ has been around for months. The Republicans’ strategy to stall health care reform in order to hobble Obama and Democrats also delayed opportunities for Congress to fix this consequence of the 1997 Budget agreement.

January 27, 2010 at 3:33 p.m. ( | suggest removal )