AMA: Medicare Cuts To Physicians Will Harm Utah Seniors

AMA makes 'House Call' to Utah, discusses new national physician survey

June 12, 2007 -- SALT LAKE CITY, UT — The American Medical Association (AMA) National House Call campaign came to Utah today to draw attention to an imminent access to care problem for Utah's more than 216,000 Medicare patients. The government will cut Medicare physician payments 10 percent on January 1, 2008, forcing physicians to limit the number of new Medicare patients they can treat.

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"Utah has a huge Medicare population that will be negatively affected by Medicare cuts to physicians," said AMA President William G. Plested, III, MD. "According to the AMA's new physician survey, 60 percent of physicians say they will be forced to limit new Medicare patients when the government cuts payment rates 10 percent next year."

Congressional action is the only way to stop the Medicare cuts and preserve seniors' access to physician care. The AMA and the Utah Medical Association (UMA) are urging patients to contact Utah's congressional delegation to stop the Medicare physician payment cuts and provide physicians with a payment update in line with increases in the costs of caring for patients.

"Physicians want to care for seniors, but drastic Medicare cuts will force physicians to make difficult practice changes," said Dr. Plested. "Utah physicians will lose $30 million for the care of elderly and disabled patients next year due to the 10 percent cut in Medicare payments."

"Seniors in Utah cannot afford to lose their doctors," said Catherine Wheeler, MD, immediate past president of the Utah Medical Association. "With just 198 practicing physicians per 1,000 Medicare beneficiaries, Utah has a below-average physician-to-population ratio - and this is before the cuts go into effect this January."

"Next year's cut is just the tip of the iceberg," said Dr. Plested. "The government plans to cut Medicare payments to physicians about 40 percent over the next nine years, while practice costs increase 20 percent. Seventy-seven percent of physicians say they will be forced to limit the number of new Medicare patients they can treat if the nine years of cuts occur."

"Military families are also at risk, because, by law, the military health insurance program TRICARE ties its physician payment rates to Medicare. We are deeply concerned about access to care for Utah's 63,000 TRICARE beneficiaries," said Dr. Plested.

"We thank the Utah Congressional delegation for their past support to stop Medicare physician payment cuts," said Dr. Plested. "Now, we urge them to stop the pending 2008 cut and instead adopt a positive update to preserve access to care for seniors and military families."

The government currently pays private health insurers in Medicare Advantage 12 percent more, on average, than it spends on the other 80 percent of patients who are enrolled in traditional Medicare. These health insurers are HMOs and other private health plans - and about one in five seniors is enrolled in this program.

"Choice and competition are crucial to a free market, but taxpayer subsidies to private health insurers are indefensible when the government is cutting payments to doctors - and risking access to care for seniors," Dr. Plested said. "We call on Congress to institute fiscal neutrality between Medicare Advantage and traditional Medicare. The government estimates this will save Medicare 65 billion dollars over five years. That money could be used to help stop steep Medicare physician payment cuts that will harm seniors' access to care."

"Congressional action is needed now to preserve seniors' access to care and put Medicare on a firm foundation for the future. The government must keep its promise to America's seniors," said Dr. Plested.

Source: American Medical Association