Medicare Reduces Physician Payments
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Under a payment formula enacted in 1997, Medicare reimbursements to doctors may see a 40% cut in reimbursement rates. The formula was meant to prevent rapidly rising costs, but many physicians believe it goes too far and interferes with their ability to provide quality care for their patients. As a result, Democratic Senator Debbie Stabenow has proposed a bill that will reverse these cuts, which has been done every year since it was enacted, during periods when both parties have controlled Congress. She wants to avoid reductions for 10 years, although a more moderate version from Democratic Senator Kent Conrad would freeze the cuts for only two years. Why isn’t it in the massive healthcare reform bill? After all, Medicare is the primary health insurance provider for senior citizens. That’s a good question.
It’s possible that Stabenow wants this bill to have as smooth a journey as possible. This fix has typically received bipartisan support with little fuss, while saying that the primary healthcare reform bill is controversial is an understatement. A cynical view, expressed by Republicans like John Thune, would be that she’s trying to hide the true cost of the so-called “doc fix”, which is expected to be about $247 billion under Stabenow’s bill (Conrad’s modified version is projected to cost $25 billion). If included in the hulking reform measure–which it probably will be if it doesn’t pass alone, because it’s largely a giveaway to organizations like the American Medical Association in exchange for their essential support on reform–it’ll break the $1 trillion mark and be harder to pass.
On one hand, giving doctors more taxpayer money to do their jobs is silly and irresponsible, and that might be the case. However, the intent of the bill is to give physicians stability in order to facilitate their continued practice. This is especially important, since the huge baby-boomer population will soon reach the magic age of 65 and therefore become eligible for Medicare. If the upheavals in the health insurance market put some doctors out of business, many retirees with health insurance will be out of luck.
