Medicare Legislation Debate Continues

Senate Finance Committee Chair Max Baucus (D-Mont.) plans to ask physician groups to support his Medicare bill, which would delay a scheduled 10% reduction in physician reimbursements for 18 months. The $8.4 billion bill would delay the reduction in Medicare physician reimbursements, scheduled to take effect on July 1, through "balloon financing" that would result in a 21% reduction in 2010.

The AMA supports S. 2785, a bill sponsored by Sen. Debbie Stabenow (D-Mich.) that would increase physician reimbursements by 1.8% for 18 months and would NOT impose a later reduction. The bill would replace 18 months of Medicare payment cuts to physicians with payment updates that better reflect medical practice cost increases. On July 1, 2008, Medicare will cut physician payments by 10.6 percent. The 18-month timeframe in the Save Medicare Act of 2008 (S. 2785) will provide stability into the payment system. It will also give Congress time to begin working on a long-term solution to the payment system without having to take action to stop the cuts twice in one year. The Medicare Payment Advisory Commission has made a recommendation to lawmakers to replace physician payment cuts with updates that reflect medical practice cost increases.

The AMCNO and other medical organizations support the bill sponsored by Sen. Debbie Stabenow (D-Mich.) that would increase physician fees by 1.8% for 18 months and would not include "balloon financing" language that would set up higher pay cuts in the future to compensate for a temporary delay. 

The AMCNO has written to Congressional representatives from Ohio urging their support of S. 2785. 

AMCNO members are also urged to take action in this matter. To send a letter to Congress in support of S. 2785 AMCNO members may click here Find you legislator to send a prepared letter to your representative or senator directly through our web site. Physicians may also call the AMA legislative line (800) 833-6354 to get in touch with your members of Congress in support of S. 2785.