Medicare Part B Premium Increase Might Affect AMA’s Efforts To Avert Scheduled Physician Payment Cut

CMS' announcement on Sept. 16 that Medicare Part B premiums will increase 13.2% in 2006 has presented a challenge for the American Medical Association and others seeking to reverse a scheduled 4.3% reduction in Medicare physician payments next year, CQ HealthBeat reports (CQ HealthBeat, 9/19). With Medicare law requiring that 25% of total spending on Part B be covered by premiums, any increase in the cost of part B -- including a reversal of the scheduled physician payment cut -- will result in higher premiums for beneficiaries, The Hill reports (Young, The Hill, 9/20). AMA Trustee James Rohack said that physician services accounted for less than one-fifth of the increase in premiums in 2006, countering assertions that spending growth in Medicare physician payments is the key factor behind the 2006 premium increase. AMA also emphasized that if the payment cuts go through, beneficiaries' access to care would decrease as more doctors would decline to treat Medicare beneficiaries. However, AMA's efforts could be slowed by AARP, which is lobbying to keep beneficiaries' premiums down, CQ HealthBeat reports (CQ HealthBeat, 9/19). AARP Senior Legislative Representative Andrea Price said the group is "not advocating against a physician-payment fix" but is more concerned about holding down premiums (The Hill, 9/20).