Breaking news from the American Medical Association

Sat Nov 26 14:55:32 PST 2011

Description: Description: Description: Description: CAL/AAEM: California
Chapter of the American Academy of Emergency Medicine

November 21, 2011

Breaking news from the American Medical Association 

AMA.org <http://www.ama-assn.org/> 

Supercommittee failure leaves 27 percent Medicare payment cut in place

With the Joint Select Committee on Deficit Reduction failing to reach
agreement on a deficit-reduction proposal, physicians still face a 27
percent cut in Medicare physician payments scheduled to take effect Jan. 1.
Congress has missed an opportunity to address the nation's fiscal problems,
stabilize the Medicare program and permanently repeal the sustainable growth
rate (SGR) formula.

"The deficit committee had a unique opportunity to stabilize the Medicare
program for America's seniors now and for generations to come," AMA
President Peter W. Carmel, MD, said in a statement. "Once again, Congress
failed to stop the charade of scheduled annual physician payment cuts and
short-term patches that spend more taxpayer money to perpetuate a policy all
agree is fatally flawed. A decade of uncertainty and repeated threats of
steep cuts threaten access to care for seniors and military families who
rely on the Medicare and TRICARE programs."

Proposals to repeal the SGR fell victim to disagreement over fundamental
principles for achieving deficit reduction. Sharp partisan division over the
mix of entitlement cuts and tax hikes prevented the supercommittee from
reaching any agreement on a deficit-reduction package.

Sen. Max Baucus (D-Mont.), Sen. John Kyl (R-Ariz.) and Senate Majority
Leader Harry Reid (D-Nev.) were among the leading advocates for SGR repeal
in the supercommittee negotiations. Earlier this year, Sen. Pat Toomey
(R-Pa.) had also offered a deficit-reduction package that included SGR
repeal.

Congressional action expected to avert 27 percent cut on Jan. 1

Democratic and Republican leaders in Congress have publicly stated their
commitment to take action this year to avert the 27 percent cut. Options for
SGR relief outside of the supercommittee process have ranged from short-term
patches of a year or two to longer-term relief that provides for transition
to a new Medicare physician payment system.

The scope of the next SGR intervention will not come into better focus until
Congress returns from its Thanksgiving break. Congress has a number of items
of unfinished business that require action before departing for the
Christmas holidays. Stay tuned for future updates via the Physicians'
Grassroots Network and other AMA communications.

Medicare participation/nonparticipation status

Medicare carriers have distributed information to determine if physicians
want to modify their status as participating or nonparticipating physicians.
The AMA has developed the "Know your options: Medicare participation guide"
to help physicians evaluate their options and choose the direction that is
suitable for their practice.

The kit contains a detailed explanation of physician options, a calculator
and various sample materials for communicating with patients. Given the
current level of uncertainty, physicians may want to defer making a decision
on their participating/nonparticipating status for a few weeks. Physicians
have until Dec. 31 to modify their status.

What can you do at this juncture?

Register your strong concerns with your members of Congress that yet another
SGR deadline is approaching and Congress has yet to act. Call the AMA
grassroots hotline at (800) 833-6354 and ask your representatives and
senators what specific steps they will take to end the annual SGR fiasco.

If they tell you that they are "with you," remind them about the multiple
missed deadlines in 2010. Physicians and their patients need action rather
than vague expressions of support.

Thanks for past grassroots efforts; frustration, fatigue understandable

AMA elected leadership and management thank all of you who have responded to
our calls to action. Your hard work has helped us generate a massive
grassroots outcry from both physicians and patients on behalf of SGR repeal,
with more than 250,000 email and phone call contacts to Congress on this
issue in just a few months.

Everyone in the medical community is tired and frustrated with the annual
Medicare payment battle. Responsibility for the current situation rests
squarely with one group: Congress. Medicine should not beg or plead for
short-term relief that grows the problem. It is up to our elected leaders to
carry out commitments made to physicians and patients.

Sequestration cuts

Current law stipulated that across-the-board cuts totaling $1.2 trillion
will be imposed in 2013 if the supercommittee fails to achieve this targeted
amount. This spending reduction is to be equally divided between defense and
non-defense programs.

Medicare cuts are limited to a 2 percent reduction in provider payments.
This sequestration cut would be separate or on top of any potential SGR
reduction. Given the severe cuts that sequestration would impose on defense
and other programs, there has been extensive discussion by members of
Congress regarding passage of new legislation to prevent sequestration from
being implemented in 2013.

Marcus Williams &
Brian Potts MD, MBA
Managing Editors, CAL/AAEM News Service

Contact us at: calaaem.news.service1 at gmail.com

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