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Obama Signs 'Doc Fix' Bill

 |  By cclark@healthleadersmedia.com  
   December 16, 2010

President Obama Wednesday signed a bill that delays a dreaded 25% pay cut for physicians who treat Medicare and military patients, legislation that medical groups said was sorely needed to maintain access to quality care for seniors.

"Without the action the President took today, doctors who see Medicare patients and families enrolled in TRICARE would have seen their payments slashed by 23 percent, Nancy deParle, director of the White House Office of Health Reform, wrote on the White House Blog. Another 1.9% cut was set to take effect Jan. 1.

"The pay cut wouldn't have just hurt doctors---seniors and families across America would have suffered as well. Many doctors would have simply stopped seeing Medicare patients and military families if this pay cut took effect, effectively denying patients the chance to see the doctor they know and trust."

The bill, officially called the Medicare and Medicaid Extenders Act of 2010, postpones the Sustainable Growth Rate formula, which sets the rates by which Medicare and TRICARE doctors are paid.

Implementation of the formula, which is based on the economy and how much Medicare spends, has been delayed consistently since 2002, and in that time the percentage of pay cut has steadily grown. Each time, physician groups and others who demanded a permanent fix criticized Congress for "kicking this can down the road one more time" rather than permanently repealing it.

The American Medical Association was happy for the one-year extension, which will give newly elected lawmakers a chance to get up to speed in hope of permanently repealing the antiquated formula next year.

"The AMA commends President Obama and bipartisan leaders in the Senate and House for their commitment to a year-long delay of the 25 percent cut," said AMA president Cecil B. Wilson, MD. "The AMA strongly advocated for this one-year delay to create a stable environment for seniors and their physicians. Leaving behind this year’s vicious cycle of five delays was crucial to preserving health care for seniors, and it provides time for Congress to work on a long-term solution to the physician payment problem.

“There is bipartisan agreement that the current system is broken, and AMA will work closely with policymakers on a long-term solution that helps physicians continue to care for seniors now and in the future," Wilson said. "It’s clear that 2011 is the year to finally fix this problem, as the baby boomers begin relying on Medicare this January for their health coverage.”

The AARP and the Military Officers Association of America are two groups that advocated for the one-year extension.

DeParle, however, said in her White House blog post that it's time for a permanent solution.

"Today was an important milestone, but signing this law is just the first step. For years, Congress and Presidents from both parties have acted to stop pay cuts for doctors called for by the Sustainable Growth Rate. Each solution was temporary, forcing Congress to continually deal with this matter and leaving doctors to wonder if they would be forced to take a pay cut in the future.

"After years of temporary measures, the President believes it's time for a permanent solution. Over the next year, the President and his team will work with Congress to address this matter once and for all. We all agree that this formula needs to be changed. Now's the time to get it done."
 

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