|
|
|
|||||||||||
|
Press ReleaseFor Immediate ReleaseNov. 4, 2003 Medicare Payment Reductions Could Jeopardize Care In Vermont Vermont physicians will lose approximately $6.7 million in Medicare payments next year, if Congress fails to stop a planned 4.5 percent rate reduction, the Vermont Medical Society estimates. That large a cut, on top of a 5.4 percent decrease last year, could drive some Vermont physicians out of business and jeopardize access to medical care for Vermonters, particularly those living in rural areas. In 2004, Vermont physicians and other medical professionals were expected to receive approximately $149 million for services paid under the Medicare fee schedule. But last Thursday the federal Centers for Medicare and Medicaid Services issued a final rule reducing payments by an average of 4.5 percent. For Vermont, that would mean a loss of $6.7 million. This cut is taking place despite the fact that the government estimates physician costs will increase by 2.9 percent next year. There were approximately 90,000 Vermonters on Medicare as of 2001. Medicare payments to physicians have been going down steadily since 2001, while costs such as malpractice insurance premiums have increased sharply during that time. Meanwhile, state Medicaid program payments to physicians have remained flat. The result is that Vermont’s physicians are under intense financial pressure. Some have been struggling to stay in business and continue serving their patients. The round of Medicare payment cuts scheduled for 2004 may be the final blow. “I am truly worried about the financial viability of my medical practice,” said Dr. Carolyn Taylor-Olson, a solo internal medicine practitioner in Brattleboro. The impact of previous Medicare cuts has been devastating, she said. “So far this year, I have had two months out of nine where my practice was in the black.” Dr. Taylor-Olson said her business income so far this year has decreased 19 percent, compared to the first nine months of 2002. About 35 percent of her patients are Medicare beneficiaries. Dr. Taylor-Olson said that her ability to raise other rates to make up for the Medicare cuts is limited by contracts with insurers. “There’s nowhere to cost-shift to,” she said. Vermont’s hospitals will also be hit hard by the Medicare rate reduction. About 50 percent of the state’s physicians are employed by hospitals, said Bea Grause, president and CEO of the Vermont Association of Hospitals and Health Systems. Because Medicare payments for those physicians’ services go to the hospitals, collectively they stand to lose more than $3 million next year, she said. “It will have a significant impact to every hospital,” she said. Congress can take action to block the scheduled Medicare cuts and preserve Vermonters’ access to medical care. A provision in the House version of the Medicare prescription drug benefit bill would halt Medicare payment cuts in 2004 and 2005, and replace them with payment increases of at least 1.5 percent in those two years. “Congress must act now to stop the Medicare payment cuts before it is too late,” said Dr. James O'Brien, president of the Vermont Medical Society. “Medicare payments are not keeping up with physicians’ practice costs. These cuts also hurt military retirees and the families of active duty military, as TRICARE rates are tied to Medicare rates. "The Vermont Medical Society's message to Congress is clear: Pass the prescription drug bill with a provision that halts Medicare payment cuts. This will help provide prescription drug coverage that seniors need, and make sure patients will have a doctor available when they need one. We need a strong Medicare bill signed into law for the good of America’s seniors, disabled and military families,” Dr. O'Brien said. For more information: Dr. James O’Brien, VMS president (802) 655-3000 |
|||||||||||
|
|
