Tuesday, November 09, 2010

AMA Warns of ‘Catastrophe’ Without 13-Month ‘Doc Fix’

Last June Congress passed a “doc fix” to hold off drastic cuts in Medicare payments to doctors — but only for six months.
Those six months are almost up, and now there’s a 23% reimbursement cut due to kick in Dec. 1 and a 25% cut on Jan. 1, according to the American Medical Association. Once again, the AMA is warning of the effects if Congress doesn’t come up with a longer-term solution.
If Congress doesn’t come up with a fix before it adjourns for the Thanksgiving holiday, it will be “catastrophic for seniors who rely on the Medicare program,” AMA President Cecil Wilson said at a press conference in San Diego, where the physicians’ group is holding a meeting. The AMA wants at least a 13-month patch for the payment problem.

Relying on these piecemeal fixes does nothing to address the larger problem: the payment formula being used now consists of automatic, across-the-board reimbursement cuts if spending reaches a certain level. No one likes that formula, but it would be very expensive to revamp permanently.

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