October 23, 2006

 

ASA opposes cuts to physician payments in comment letter to CMS

Continuing its efforts to strongly oppose cuts to Medicare payments for physicians, ASA submitted comments to CMS regarding the 2007 Physician Fee Schedule. 

For an excerpt from the letter, please click here.

The proposed rule, published in the Aug. 22 Federal Register, included a staggering 5.1% negative update to Medicare physician payment—even more than the 4.6% SGR-based cut originally projected—that would take effect Jan. 1, 2007.

Further, the cut is in addition to reductions proposed in the June 29 Federal Register. The earlier proposal, which is still under consideration, included a new practice expense methodology and changes in work values stemming from the recently-conducted Five Year Review.  These adjustments would amount to a 10% cut in Medicare payments to anesthesiologists over the next four years—on top of any yearly SGR cuts.

In its proposed rule, CMS also failed to address the 50% payment penalty that affects teaching anesthesiologists who oversee residents on overlapping cases.  This policy costs anesthesiology teaching programs an average of $30 million to $40 million each year.

Every ASA member is strongly encouraged to take the following actions against egregious physician payment cuts, and supporting legislation to restore full funding to anesthesiology teaching programs:

• Ask your Representatives and Senators for a positive 2.8% payment update in 2007, as recommended by MedPAC.  Congress should repeal the unworkable SGR formula and replace it with a system of positive updates based on the MEI.  You may contact your Representatives and Senators through the Capitol Switchboard at (202) 225-3121, or through the ASA CapWiz site.

• Urge your Members of Congress to cosponsor Teaching Rule legislation, and express their support to key committee members.  Contact your Representatives by phone through the Capitol Switchboard, or through the ASA CapWiz site.