HB 2356 was recently introduced in the U.S> House by Rep. Shaw (R - Florida) and Rep. Cardin (D-Maryland.) the bill would stop looming Medicare payment cuts and avert an access to care crisis. It sets a Medicare physician payment increase for 2006 at no less than 2.7 percent, instead of the 4.3 percent cut projected by the current formula. The 2.7 percent increase is in accordance with the recommendation of the Medicare Payment Advisory Commission (MedPAC.) HR 2356 would also replace the current Medicare physician payment update formula with a new formula that increases the update each year, beginning in 2007. Under the current formula, Medicare is projected to impose physician payment cuts of 26 percent over six years beginning in 2006, while the cost of running a practice and caring for patients increases 15 percent. From 2006-2014 – Medicare payments in Ohio would be cut by $4.97 billion. For physicians in Ohio, the cuts over this period will average $20,000 per year for each physician in the state. The first of the 6 annual Medicare pay cuts is slated to occur on 1/1/06. Medicare physician payment rates in Ohio will be cut by $101 million in 2006. These figures are derived from the 2005 Medicare Trustees’ Report and an impact analysis completed by the AMA in March 2005.
AMC/NOMA members are encouraged to voice strong support for H.R. 2356 – the Preserving Patient Access to Physicians Act of 2005. Write to your members of Congress today urging their support of H.R. 2356. For more information on the legislation go to the AMA web site at www.ama-assn.org