AMA Says Slow Economy May Reduce Medicare Payments
Bloomberg News on Sept. 10 reported that the
American Medical Association said that the slowing U.S. economy may reduce Medicare and private insurer reimbursements for physicians and affect the number of Medicare beneficiaries that they treat. Medicare determines the payments for doctors each year through a formula that "depends partly" on changes in the gross domestic product. In March, the government predicted that the GDP would increase 1.5% this year, down from a 4.2% jump last year. The economic slowdown could lead to a 3% reduction in Medicare reimbursements for physicians this year, the AMA said in an Aug. 29 letter to
Centers for Medicare and Medicaid Services Administrator Thomas Scully. Last year, physicians received a 4.5% boost in Medicare payments. The increase allowed doctors to negotiate higher reimbursement rates from private health plans, which "generally follow" rates set by Medicare. By Nov. 1, CMS will publish final changes to Medicare physician payments, which will take effect Jan. 1. The AMA urged CMS officials to "reconsider their estimates" and increase reimbursements for physicians, which does not require congressional approval. This year, Medicare will spend about $40 billion on payments to doctors (Bloomberg News, 9/10).
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