AMA to Congress: Fix the Medicare Payment System!

The current Medicare physician payment formula is fatally flawed and must be replaced with one that reflects the reality of practice cost increases, representatives of the American Medical Association (AMA) testified to Congress’ Senate Finance committee today. The Academy of Medicine of Cleveland & Northern Ohio (AMCNO) echoes this sentiment, as our organization has also worked diligently over the last several years advocating and educating on the physician payment formula. Crucial among our concerns remains the issue of access to care for area seniors. Congress’ own advisory committee on Medicare, MedPAC, recommends that Congress override next year’s planned payment cut of 10 percent and instead update payments based on practice cost increases. This increase, 1.7 percent in 2008, will help physicians keep practice doors open to Medicare patients and make investments in health information technology and new medical equipment that assist with quality improvements. According to MedPAC, already about 25 percent of Medicare patients seeking a new primary care physician have problems finding one, and for the first time this year they report that the number of Medicare patients having problems finding a new specialist was higher than the rate of privately insured patients. The AMCNO will continue to monitor this issue as it is considered by Congress, and throughout 2007 on behalf of our membership, providing updates and opportunities to contact legislators through our Web site.