Human cost of cuts in Medicare
Physicians turning away new patients
By Cheryl Clark
STAFF WRITER
January 8, 2006
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Based on calls to his Tupelo, Miss., office in the past few days, American Medical Association President Dr. Edward Hill said a significant percentage of physicians nationwide is also moving toward rejecting new Medicare patients. "The problem is not (pay cuts) this year, but year after year after year," said Hill, a family practitioner. "Now, the frustration across the country is generalized." From this year to 2011, physicians' expenses will increase 15 percent while Medicare reimbursement will decline 26 percent, according to AMA projections.
The San Diego County Medical Society, which represents physicians, says this may exacerbate a local shortage of doctors. It has said many of them are retiring early or have found other lines of work because of disenchantment with their pay. Hay said the situation continues to worsen, with fewer specialists willing to practice in the county.
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Greg Knoll, an attorney who directs the Consumer Center for Health Education and Advocacy in San Diego, said he often can't find physicians to treat poor patients. "Unless you're in a managed-care plan where doctors are contractually obligated to see you, we can't find an orthopedic specialist to see Medi-Cal patients now," Knoll said. "If the government thinks Medicare cuts won't have the same disastrous effect on elderly and sick people that (past) cuts in Medi-Cal have had, it is sorely mistaken."
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Although Congress and the Center for Medicare and Medicaid Services agree that the federal government's formula for setting reimbursement rates is flawed, efforts to change it have been a political hot potato. The formula assumes that health expenses have kept pace with a cost-of-living measure called the gross domestic product. In reality, health-care costs have risen much faster than the GDP. The problem may affect care provided to privately insured patients in managed-care organizations, which enroll millions of Californians. That's because many HMOs tie their reimbursement rates to those set by Medicare.
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Mazer offered two examples to show how Medicare payments to doctors have fallen.
In 1988, he received $2,300 for an operation involving microsurgery of the ear. Today, he gets $1,100 for the same procedure. Similarly, Medicare paid Mazer $500 for a tonsillectomy in 1988. Now, it reimburses him $287, he said. "And there's no change in the amount of work, time or liability" shouldered by the physician, Mazer said.
Cheryl Clark: (619) 542-4573;
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