Policy & Public Affairs
MEDICARE PHYSICIAN PAYMENT FAIRNESS ACT S. 1707/H.R. 3351 URGENT ACTION NEEDED NOW
Because no action was taken last year on H.R. 3351, as of January 1 of this year, the 5.4 percent Medicare cut impacts all Medicare services provided by physicians and other health professionals, including, but not limited to, physical therapists, audiologists, optometrists, advanced practice nurses and podiatrists, as well as medical doctors and osteopaths. The 5.4 percent cut (the largest payment cut since the Medicare fee schedule was developed 10 years ago) is forcing health professionals doctors to make difficult choices concerning their ability to continue accepting new Medicare patients.
As you may recall, ASN has been working with the AMA and other physician and non-physician groups to address the Medicare fee schedule problem and to ensure that legislators realize that these negative payment updates affect their constituents. In response to the issue, a Medicare Update one-pager was developed and sent to Congress on March 2, 2002. The one-pager focused on the need for an immediate halt to the 5.4% Medicare payment cut that took effect in January. The document will be used on the Hill and for other grassroots activities. ASN was among the 90 organizations that endorsed the one-pager.
MEDICARE UPDATE
"The Medicare Physician Payment Fairness Act" (S. 1707 and H.R. 3351) obtained a super-majority in the House and Senate in less than one month's time, with over 2/3 of the Senate as co-sponsors and over 300 co-sponsors in the House.
STATUS: Despite this super-majority, no floor action occurred on S. 1707 or H.R. 3351 in 2001, and therefore the Medicare physician payment update went into effect on January 1, 2002. Payments to MDs and DOs, therapists, advanced practice nurses, chiropractors, optometrists, and others are NOW being cut 5.4% for every service.
MEDICARE SENIORS' ACCESS TO CARE SERIOUSLY DIMINISHED
Many physicians and other health care professionals report that they face difficult choices due to this pay cut, and they may be forced to:
- move from being a participating to a non-participating Medicare provider,
- relocate to an area with fewer Medicare patients,
- retire from practice early,
- limit or discontinue charitable care,
- balance bill patients (subject to Medicare charge limits),
- limit or discontinue necessary investment in new technology,
- leave Medicare entirely or discontinue accepting new Medicare patients,
- reduce staff, or
- limit practice to only specific health care services.
RURAL IMPACT EVEN WORSE
In rural America, in particular, the 5.4% Medicare pay cut could devastate local communities' access to care, and will increase the serious access problems that Medicare beneficiaries have already experienced in many states. In fact, the Medicare Payment Advisory Commission (MedPAC), June 2001 report, warned that this steep cut "could raise concerns about the adequacy of payments and beneficiary access to care."
LARGEST PHYSICIAN CUT IN MEDICARE HISTORY, ONE MILLION PHYSICIANS AND HEALTH CARE PROFESSIONALS AFFECTED
This update is a sweeping 5.4% cut in payments to all health care professionals paid under this formula, the largest payment cut since the Medicare fee schedule was developed a decade ago.
Nearly one million physicians and other health care professionals as well as the millions of elderly and disabled Medicare patients they serve are immediately affected. Not only does this cut affect the Medicare program, it also seriously impacts the private market as many private payers base their rates on Medicare.
REQUEST: We strongly urge you to contact your leadership to request an immediate legislative halt to the 5.4% Medicare payment cut. Action on this matter should not be deferred for consideration as part of a broader package that might face delay.