Latest Medicare cut looms

MGMA study predicts sharp physician reaction to pay cut

posted 11.02.10

Unless Congress acts before the end of the month, payments to physicians for the services they provide to Medicare beneficiaries will be cut 23.6 percent on Dec. 1, with an additional cut of 6.5 percent on Jan. 1.

According to a recent survey by the Medical Group Management Association, nearly 70 percent of physician practices say they “are likely to limit” the number of new Medicare patients they will accept if the cuts go through. Also reported, 49.5 percent of medical groups say that they will stop seeing new Medicare patients, and 27.5 percent say they will stop treating all Medicare patients.

In addition to reducing the number of Medicare patients they see, the survey showed that physicians plan to make reductions in administrative and clinical staff, and delay the purchase of new clinical equipment, facilities, and the purchase of electronic health record systems.

AAFP urges Congress to act before the deadline to fix the broken Medicare payment system. The national Academy has gathered resources for you and your patients to advocate for fixing the physician payment system. Go to www.aafp.org/online/en/home/policy/federal/issues/cmsacttools.html to e-mail your congressional representatives, and download the Medicare Action Fact Sheet, a sample letter for you to send your patients, and a sample letter for your patients to send Congress.

Stay tuned for more as your Academy follows this story.