Physicians Warn of Medicare Repay Cuts -- Paybacks Won't Cover Expenses so Doctors May Stop Taking Medicare Patients
Posted on: Wednesday, 17 August 2005, 12:00 CDT
The American Medical Association's immediate past president warned Monday that unless doctors are paid more to treat Medicare patients, the older and disabled Americans who rely on the program will find it tougher to find one.
Dr. John Nelson was in Memphis urging doctors and Medicare patients to contact their congressmen and senators to support legislation to revamp Medicare's physician reimbursement system. Nelson is an obstetrician-gynecologist from Salt Lake City.
"We need to let people know that our seniors' care is at risk," he said. Nearly 872,000 Tennessee residents are covered by Medicare. Nelson was scheduled to discuss the issue at appearances in Jackson , Nashville and Chattanooga.
The AMA wants to repeal the current pay formula. Under it, Medicare will cut physician reimbursement by 4.3 percent Jan. 1. The AMA noted cuts would continue, totaling 26 percent by 2011.
The AMA supports bills that would increase doctor pay at least 1.5 percent next year and link future payments partly to an inflation index.
An American Association of Retired Persons spokesman said the organization is concerned about how a fix would impact patient costs. "We want physicians to be fairly compensated, but whatever fix must be balanced with the impact it would have on the premiums paid by beneficiaries," said Mary Liz Knish, Tennessee AARP spokeswoman.
Premiums paid by Medicare patients help pay doctors. Knish said those premiums rose to $78.20 per month this year and will go to $89.20 in 2006. She said further increases will make it unaffordable for patients.
Nelson said it was time to tie Medicare's benefits and costs to patient income. He said he didn't want to burden patients, but warned the current pay system can't be sustained.
He said a recent AMA survey found 38 percent of doctors plan to stop taking new Medicare patients if the scheduled pay cuts begin.
Kathryn Coulter of the Aging Commission of the Mid-South said she's already hearing from Mid-South Medicare patients having trouble finding a doctor. She estimated that in the past year a dozen patients have called looking for help.
Dr. George Chu, a Memphis internal medicine specialist, said he closed his practice to new Medicare patients several years ago.
"The cost of taking care of Medicare patients doesn't cover what it costs us to provide the service," said Chu, who estimated that Medicare still accounts for half his practice. He said low Medicare reimbursement means doctors must simply shift costs to other patients.
If patients asked, Chu said he would explain that Medicare pays only a portion of the bill he submits. Meanwhile, his own business expenses, including his health insurance and malpractice premiums, are rising.
Nelson's remarks came during a morning meeting with physicians at the University of Tennessee Health Science Center.
- Mary Powers: 529-2383
Source: Commercial Appeal, The
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