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Leavitt: Doctors Need Electronic Records

Posted on: Monday, 3 December 2007, 18:00 CST

By KEVIN FREKING

WASHINGTON - The nation's medical doctors should have to adopt electronic record-keeping if they want to avoid a pay cut from Medicare next year, the Bush administration said Monday.

Beginning Jan. 1, physicians face a 10 percent pay cut when treating their elderly and disabled patients. Congress has headed off similar cuts in recent years, and will probably do so again this time.

The Senate Finance Committee is expected to weigh in later this week on how to pay for offsetting the cut, which some estimates put at $8 billion for a one-year fix.

Many health analysts believe widespread use of electronic health records will reduce medical errors and could potentially slow soaring health care expenses. Yet, only about 10 percent of doctors in solo or small-group practices use such records. Upfront costs for putting in place such computer systems can range from $20,000 to $40,000.

Lawmakers have been divided on how to pay for more widespread adoption of electronic record-keeping. Health and Human Services Secretary Mike Leavitt put the onus on doctors Monday.

"In my view, any new bill should require physicians to implement health information technology that meets department standards in order to be eligible for higher payments from Medicare," Leavitt said.

The House has already voted to trim payments to private insurers to help offset the expense of paying doctors more. Senators are looking at more modest cuts for the insurers, which serve more than 8 million people enrolled in the Medicare Advantage program.

Leavitt reinforced the administration's position that it opposes payment cuts to insurance companies, which take on the risk of providing Medicare benefits to seniors in return for a government subsidy.

"Medicare Advantage enrollees are overwhelmingly satisfied with their choices for care, and enjoy substantial benefits and value," Leavitt said. "Both have proven to be highly popular with the American people and worthy of continued support from Congress."

But several advocacy groups, such as the AARP and the National Committee to Preserve Social Security and Medicare, say the payments to the insurers are too generous, which forces beneficiaries in traditional Medicare to pay higher monthly premiums.

Source: Associated Press/AP Online

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