Medicare Rate Cut Prompts Several Washington State Physicians To Stop Accepting New Medicare Beneficiaries

In response to a 5.4% cut in federal Medicare reimbursements to physicians, many Washington state doctors have decided to stop accepting new Medicare patients, the Puget Sound Business Journal reports. The current formula was adopted by Congress as part of the 1997 Balanced Budget Act (Neurath, Puget Sound Business Journal, 1/18). Although several groups lobbied CMS to not impose the rate reduction, officials said "they have no choice but to follow" the current formula, which is based in part on changes to the nation's gross domestic product. At the time the new rates were announced, many health experts said the reduced fees could lead to fewer Medicare providers and an overall reduction in the number of physicians (Kaiser Daily Health Policy Report, 1/15). In Washington state, about 45% of physicians in a recent survey said they will no longer accept new Medicare beneficiaries. Another 12% said they will no longer treat any Medicare beneficiaries. The poll of 195 doctors was conducted by the Washington State Medical Association. Tom Curry, director of the WSMA, said, "Our prognosis is this is a situation that will deteriorate. We will see more physicians restricting new Medicare patients or dropping them. This is the next tsunami." The Business Journal reports that federal lawmakers have introduced legislation (HR 3351) that would reduce the cuts from 5.4% to 0.9% (Puget Sound Business Journal, 1/18).