AMA urges Congress to halt looming Medicare cuts; Avert Medicare access problem for seniors

INDIANA, Aug. 23 /U.S. Newswire/ -- The American Medical Association (AMA) brought its National House Call campaign to Indiana this week to draw attention to an imminent access to care problem for Indiana's nearly 850,000 Medicare patients. If Congress does not act, payments to physicians are scheduled to be cut drastically, starting Jan. 1, 2007, forcing physicians to make difficult decisions about limiting the number of new Medicare patients.

"Medicare payments are scheduled for cuts of nearly 40 percent over the next nine years, while at the same time the government estimates that the cost of caring for patients will rise 22 percent," said AMA Trustee Ardis D. Hoven, M.D. "Physicians want to serve America's seniors. Unfortunately, drastic Medicare cuts will force physicians to make difficult practice changes. Indiana's disabled patients, its seniors and its retiring Baby Boomers all deserve better."

"Nearly half (45 percent) of the physicians surveyed by the AMA say next year's Medicare cut will force them to either decrease or stop seeing new Medicare patients," said Hoven. "That's just the tip of the iceberg, with the vast majority of the cuts yet to come in the years following 2007. Congress needs to stop the physician payment cuts and provide payments based on the cost of providing care."

The AMA and Indiana State Medical Association (ISMA) met with local media and physicians in Indianapolis, Kokomo and South Bend to discuss the effects of the Medicare payment cuts in Indiana. The AMA and ISMA are urging patients to contact Indiana's congressional delegation to stop the Medicare physician payment cuts.

"In Indiana, Medicare reimbursements will be cut $62 million next year and $4 billion over the next nine years. That's a huge loss of federal dollars which creates a major barrier to seniors' access-to-care," said ISMA President Kevin Burke, MD.

"Indiana's health and economy could both suffer if these Medicare cuts go through," said Hoven. "Data from the Bureau of Labor Statistics show that these Medicare physician payment cuts could have an impact on more than 61,000 employees in Indiana, including nurses, technicians, administrators and other support staff."

"Seniors in Indiana cannot afford to lose their doctors," Burke said. "With just 16 practicing physicians per 1,000 Medicare beneficiaries in 2005, Indiana is already well below the national average of 20 physicians per 1,000 Medicare patients. And this is before the cuts go into effect next January."

"In addition, TRICARE, which provides health insurance for military families and retirees, ties its physician payment rates to Medicare. So, the Medicare cuts could hurt access to care for Indiana's 82,000 TRICARE beneficiaries," Burke said

"The support of Indiana's congressional delegation is critical to stop the cuts and preserve seniors' access to care," said Hoven.

"The Senate just took an important step toward legislative action as 80 senators, including Sens. Richard Lugar and Evan Bayh, recently sent a letter to the Senate leadership urging Congress to act soon to stop the cuts and reimburse physicians more in line with practice costs," said Hoven.

"In the U.S. House, Reps. Mark Souder, Peter Visclosky, Steve Buyer and Dan Burton have pledged their support, and we thank them for their support. We applaud them for their efforts and urge all of Indiana's senators and representatives to act before the end of September in order to stop the payment cuts, which would go into effect on Jan. 1," said Hoven.

"Congress needs to take a good, hard look at the future of Medicare on its current course and take action. Congressional action now to avert this crisis can shore up Medicare's foundation and put the program on solid footing for the future. America's seniors deserve no less," said Hoven.