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Medicare Reimbursement Policies Could Have Impact On Patient Care

Arizona Capitol Reports Staff//August 12, 2005//[read_meter]

Medicare Reimbursement Policies Could Have Impact On Patient Care

Arizona Capitol Reports Staff//August 12, 2005//[read_meter]

I am writing to express my concern about the ability of Medicare beneficiaries to secure the services of physicians in our community.

Since 1997, Medicare has reimbursed physicians based upon a flawed formula. This formula has resulted in reimbursement rates that fall well below costs and inflation.

I understand that many believe that physicians are well paid and wealthy members of our society. I would like to dispute these opinions.

Physicians are projected to experience a 4.3 percent reduction in Medicare reimbursements in 2006, with additional cuts projected through 2012.

These cuts potentially might reach 30 percent over the next seven years if Congress does not intervene. Over the same time period, my practice costs are expected to grow at a rate of 2 percent to 3 percent per year. If nothing is done, the difference between my costs of providing care and the reimbursements I receive will reach approximately 50 percent.

Compounding the problem is the fact that most third-party payers and other health systems use Medicare reimbursement rates when establishing their reimbursement policies, reducing reimbursements from all payers. Few, if any, businesses can financially survive on these economic factors. Physicians are no different.

The current Medicare reimbursement system and its inequities have resulted in numerous physicians departing the Medicare system or limiting the number of beneficiaries they will care for. This is becoming a more common practice in our community and should concern each of us. For the millions of Americans who rely upon the Medicare program and the millions of baby boomers approaching eligibility, access to their physician is a top priority. Congress has an opportunity to protect this access.

Congress must act to reform the Medicare physician payment formula to ensure that physicians are adequately reimbursed for the services they provide. This, above all other proposals, will ensure Medicare beneficiaries access to timely and quality health care services.

Brunilda Rosario, D.O., Phoenix

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