Medical societies pressure Congress for Medicare pay fix

by CHARLES FIEGL on Feb 23, 2010

Medical societies and associations have increased pressure and lobbying on Capitol Hill to pass a permanent pay fix to the budget mechanism responsible for the 21% cut to Medicare payments set for March 1. However, as of this morning, there's still no clear answer as to how Congress plans to address it.

"With drastic, across-the board 21% Medicare payment cuts to physicians only days away, the Medical Management Group Association (MGMA) strongly urges Congress to immediately repeal the Medicare sustainable growth rate (SGR) system," MGMA President and CEO William Jessee, MD, wrote to Senate and House leaders Monday. "The short- and long-term consequences of this flawed physician payment policy have never been more dire than they are today."

Physicians won't be the only group that suffers from the draconian SGR cut. Medicare patients might face more physicians refusing to take on additional patients with Medicare insurance.

"Kicking the can down the road with yet another short-term action magnifies the problem and makes it very difficult for physicians to continue caring for seniors and military families," AMA President James Rohack, MD, says.

Societies are making this clear: physicians don't want a temporary fix because it only exasperates the problem. Eliminating the SGR will politically be a tougher task in future years. The price tag to fix the SGR grows each year fixing the budget problem is delayed. In 2005, a fix cost $49 billion. Today, the cost is more than $200 billion.

Update: We are hearing some reports that a 30-day payment fix could be passed in the Senate tonight. Stay tuned ...

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