June 1st Medicare Cuts Postponed Again

As many know, June 1st was planned to be the day that Medicare payouts to physicians would decrease by 21%.  Prior to the proposed cut, cost of services are already about 20% higher than the current Medicare reimbursement rates physicians are receiving.  James Rohack, MD, President of the American Medical Association released a statement yesterday (May 20, 2010) regarding another temporary intervention that would postpone the cut to a later date. 

The problem is that the Congress could have fixed the Medicare problem 5 years ago for $49 billion which is less than the cost of the temporary remedy that Congress is now considering.  In order to keep Medicare in the black, a formula was established in 1997 that would have cut rates each year.  Seven out of the past eight years, Congress has blocked those cuts with nine going on ten patch-overs. 

Although a permanent solution to the Medicare situation is apparently not feasible at this time, the AMA strongly urges Congress to take action to resolve this issue before the next deadline.  If this problem continues down the same path, many physicians will be forced to retire or opt out of Medicare, leaving our seniors and military families without care.  When many physicians are faced with that decision, there will be few if any remaining practices that can accept patients with Medicare benefits. 

For more infomation, visit the AMA website.