June 14, 2005

Dear AMC/NOMA Member,

Physicians encouraged to voice their support for HR 2356 and SB 1081- The Preserving Patient Access to Physicians Act of 2005

Congress recently introduced two bills aimed to adjust the Medicare reimbursement formula. Under current law, the Centers for Medicare and Medicaid Services (CMS) is required to adjust payments to physicians based on a formula that ties reimbursement changes to the gross domestic product. Under that formula - physician payment would be cut an estimated 4.3 percent in 2006. 

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 January 1st of next year. It is projected that Medicare physician payment rates in Ohio would 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.)

The House legislation, HR 2356 sponsored by U.S. Rep. Shaw (R - FL) and Rep. Cardin (D-MD) HR 2356 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. 

The Senate Bill - S. 1081, sponsored by Sens. Kyl (R - AZ) and Stabenow (D-MI) would make a two-year adjustment to physician payments. It calls for at least a 2.7 percent increase for 2006 and a rise in 2007 linked to the Medicare Economic Index, which measures changes in costs faced by physicians. It includes no adjustments after 2007 to prevent the physician payment cuts anticipated each year through 2011. MedPAC's report suggested that next year's physician reimbursement update should equal the projected MEI of 3.5 percent minus a 0.8 percent increase in physician efficiency that the commission predicts will occur. 

The American Medical Association (AMA) supports both bills. AMC/NOMA members are encouraged to voice strong support for H.R. 2356 and S. 1081 - the Preserving Patient Access to Physicians Acts of 2005. Write to your members of Congress today urging their support of H.R. 2356 and S 1081. Some AMC/NOMA members are writing to their patients as well encouraging their support of these two bills. Sample letters to Congress are attached for your use. For more information on the legislation go to the AMA web site at www.ama-assn.org  or contact the AMC/NOMA at 216-520-1000. Copies of the sample letters - here Sample letters or here to send online LegislativeInfo. 

Sincerely,


George E. Kikano, M.D.
President