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CBSNews /

AP/ March 1, 2010, 6:38 PM

Docs Warn of "Meltdown" Over Medicare Cuts

Political gridlock in the Senate triggered a legal requirement Monday for a 21 percent cut in Medicare fees to doctors, who warned they may have to limit care for seniors unless the reductions are reversed.

Hoping the Senate will act soon to stave off the cuts, the Obama administration directed Medicare billing contractors to hold off processing claims for 10 business days. Medicare normally takes 14 days to pay doctors, so there would be no reduction in reimbursement if lawmakers move quickly.

"Our No. 1 goal is to avoid disrupting payments to physicians during this time," said Jonathan Blum, who directs the Medicare division that handles payments to providers.

But the American Medical Association assailed lawmakers for allowing the cuts to go through, saying it shows the political system is failing to address manageable problems with health care, let alone big challenges like covering the uninsured and trying to slow rising costs.

"Our message to the U.S. Senate is to stop playing games with Medicare patients and the physicians who care for them," said Dr. James Rohack, president of the doctors' group.

Funding to temporarily stave off the cuts was part of a bill passed last week by the House. But the Senate failed to act on the one-month fix because Republican Sen. Jim Bunning of Kentucky objected that the $10 billion measure would add to the deficit.

The Medicare cuts are the consequence of a 1990s deficit reduction measure that Congress has routinely waived for years. But every time the cuts are postponed, they only get bigger in percentage terms, making a permanent fix more costly and difficult.

Republican leaders in Congress have pledged to help pass legislation to temporarily restore the funding. But there's no consensus on a long-term solution. The Obama administration and most Democrats favor repealing the 1990s law that called for the cuts to doctors, arguing that it never worked in the first place.

The AMA's Rohack said the instability is damaging the popular health insurance program for seniors — and is a harbinger of bigger problems, if Congress fails to act this year on a health care overhaul. The doctor cuts are a prime example of why postponing action won't work when it comes to medical costs and the uninsured.

Coincidentally, the Medicare cuts come as the doctors' group opens a major issue advocacy conference in Washington this week. Health and Human Services Secretary Kathleen Sebelius is scheduled to address the AMA on Tuesday.

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AP
23 Comments Add a Comment
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sharrongrodzinsky says:
Physicians will revolt unless this cut is permanently repealed. Costs have been rising in all facets of their practice and reimbursements going down. Just this year Medicare eliminated consults as a code that can be used. Instead, all physicians must use a "visit" code which is less reimbursement. Also, less is being paid for certain diagnostic tests.

It is impossible for physicians to continue doing business in the same way they have and see Medicare and Tricare patients when their reimbursement will be decreased by a whopping 21.4%

I think you will see physicians nation wide retire, take fewer Medicare patients, take less time with them at the visit and even opt out of the Medicare program. You will also see a decrease in the number of applicants to medical school. Who wants to go into a business where you are responsible for peoples' health and life; you can be sued for any thing and you are going to be paid less and less? For all of you out there that receive Medicare benefits or valued Military families on Tricare.... Please call your Senators and Representatives and let them know how they are jeopardizing your health care!
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MaryBeth75 says:
This political gridlock is ridiculous. As it is, many Medicare recipients have problems finding doctors who accept Medicare. Cutting physician payments will only exacerbate the situation. That?s on top of premium increases and benefit cuts Medicare recipients are witnessing. For example, when I did my annual enrollment for 2010 at <a href="http://www.PlanPrescriber.com">PlanPrescriber.com</a> or http://www.PlanPrescriber.com, I noticed some plans cut benefits while others raised premiums. Medicare recipients are really feeling the brunt of the actions by lawmakers.
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tryhonesty says:
Give the RepubliCONs enough rope...and they WILL hang themselves this fall. I can not wait to vote the remaining RepubliCON elitist morons out of office!
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6591Hou replies:
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tryhonesty - Actually if the democrats really wanted to pass this they would do it, this guy is their cartoon stage goon - the longer they can keep him on the world stage the less flack they risk for not doing anything.
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KeithDrippingSprings says:
To those of you that would like to blame one party or the other you must not read the news much. All of our Representatives have their hands in the pockets of the insurance companies. No matter who comes up with the plan that eventually passes you can be sure of two things, it will do little for the people that need help and it will make the insurance companies even more money than they make now.

Our whole government has sold out and you aren't the beneficiary. Not only are they ineffective because of stupid ideology on both sides, the whole bunch are Scoundrels and Thieves.

When you take sides, Republican or Democrat, you are falling for the political tricks they have been pulling on us for 40 years. I don't know what the answers are but sniping at each other blaming Bush or Obama is not it.
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tryhonesty replies:
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Fence RIDER!
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likeitbe says:
In other words, if the Docs can't pull down a million bucks a year by bilking insurance patients, they won't work......anyone remember when doctors cared?
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hateisafourletterword replies:
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likeitbe - the average doctor makes around $250,000 per year. Sounds like a lot of money until you look at the sacrifices they make. 4 years of college - $80,000-$250,000 depending on public vs. private college. 3 years of medical school - $300,000. Then residency and training working 24 hour shifts at minimum wages. Then once you have your $400,000 of student loans that will cost you $2,000 per month for 30 years (basically a second mortgage) you get to work and make $250,000 per year. Your liability insurance can be as high as $80,000 per year if you deliver babies. Your taxes on your $250,000 are around $80,000 (U.S., state and FICA). So after taxes and after school loans you have around $140,000-150,000 depending on your city and state of residence. Or about what two union members at GM make and less than what two union members make as longshoremen.
Oh yes, those all so rich doctors.
And if by chance you get in an accident at 3 a.m. while drunk driving they get to try to save your life. If they are slightly tired and make one small mistake, you will sue them for all they have and they are done. Happy now?
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Lickedy says:
Global warming is the cause of this too !
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Califsue says:
Let's bring our troops home from Iraq - all troops not just combat - that will save at least $10Billion, I would think.
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jwesel1 replies:
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The troops are there to keep the crusader idiots happy.
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noloyalisti says:
Senate Gridlock: the ultimate repetitive statement. They need to change the rules, get rid of the filibuster being abused by the Republican obstructionists.

Remember, they lost big time in the elections. They had their chance to lead and they failed. Miserably. They are just awful, violent, racist, arrogant morons every last lizard brained reactionary one.
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hateisafourletterword replies:
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And you would accept you rules changes and still be happy when these "just awful, violent, racist, arrogant morons" have 51 or more votes in the future?
Why don't you think about what you are saying and realize that the filibuster has saved more stupid House laws from becoming law than we can count. Be thankful for the filibuster. I do not always like it being used either, but understand the historical significance of it and appreciate its ability to force reasonableness instead of extremism. Or if I understand you, only the hated republicans are unreasonable and everything Pelosi and Reid propose is reasonable, right?
dmwj2 replies:
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What they need to do, is go back to the old rules, where the filibuster is required to be continuous... they have made it too easy, and it is being abused now... by BOTH sides.
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nickjack43 says:
This is just WRONG!!!! The Repelephants and Demodonkeys are worthless to get anything done that is meaningful. I can't wait 'til November....Goodbye all incumbents!!!!!!!!!
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likeitbe says:
More PoorBamie planning. Since none of his "reforms" are due to kick in until long after he goes back to community organizing, he must have planned for this and reconciled it with his pledge to cut the deficit to under $200B/yr.
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