For the past 20 years, Medicare has resonated an eerie feeling for doctors all over the country. Medicare was established in 1965 as a social insurance program for people over the age of 65 who needed health care coverage. Since the beginning of Medicare program, the agency has contracted with several companies to appear as intermediates between government and medical establishment. The program has been a success for many elderly patients but Medicare has steadily been cutting back on its payment plans to physician for more than 20 years. And today, many physicians believe that having Medicare patients is more of a burden to their practice and diminishes their chances of having a decent livelihood.
Numerous physicians have been surveyed in the past decade and there is universal disharmony about Medicare and its payment program. In fact, in some parts of the country physicians have stopped accepting Medicare patients. Physicians today believe that Medicare does not reimburse physicians adequately enough to cover all the costs that occur while looking after the elderly.
Now there is announcement Medicare is going to introduce a 21% cut in payments. Says Dr David Wilt, an internist at a Kansas City internal medical practice, “If Medicare further cuts its reimbursement rates, then we’ll be functioning at a loss. If the “21%” cut happens, that cut in our payments will exceed our profits. The only option to us to stay in business will be to fire employees,”
Since the 21 percent cut was announced by Medicare scheduled to take place in 2010, many physicians have written to President Obama and their respective senators. However, just la few days ago, the Senate voted against stopping that cut and other annual cuts that were proposed for the coming years.
Some physicians have now combined forces and started to boycott Medicare because they are tired of dealing with payment cuts on an annual basis. The doctors say that these cuts simply are not adequate to help cover all their costs and the only solution is to cut down on their practice or stop seeing Medicare patients.
The federal government and Centers for Medicare is aware of physicians who do not acknowledge Medicare beneficiaries, but data from the agency show that this trend has only affected a few elderly patients. CMS says that more than 95% of all practicing physicians currently accept Medicare patients, which includes close to 600,000 physicians.
Say Renee Mentnech, director of CMS Research and evaluation group, “Geographically, the level within every state is less than 5% of Medicare beneficiaries who have difficulties accessing a doctor.”
However despite these positive statistics from CMS, reports of elderly patients not being able to find physicians continue to increase. Now the sentiments are on side of the physicians and the American Medical Association which speaks for most physicians in America is pushing for an improved reimbursement plan to help maintain elderly care.
Said, Dr James Rohack, president of the AMA, “We believe that as part of comprehensive health reform, physicians have to be incented to keep people healthy and out of the hospital. Under this formula, they are penalized for doing it.”