Email a Friend
Print Article
16% Pay Cut: Would You Quit Your Job?
You may not be aware of this, but Congress is wrestling with some important budgetary issues that will affect nearly every family in America.
Years ago, in order to curb the rapid expansion of health care costs, Congress wrote a law that instituted automatic semi-annual cuts to physician reimbursements. This approach allowed politicians to revisit the Medicare mess less frequently while escaping lobbyists and angry doctors. Well, the strategy backfired and all parties agreed that a better approach was needed to achieve comprehensive health financing reform.
Nevertheless, the law remains on the books, so every year Congress votes to rescind the programmed cuts. According to their formula, a 10.6% cut in Medicare reimbursements was due to take effect on July 1 with an additional 5% for January 2009. That represents a 15.6% pay cut for doctors treating Medicare beneficiaries. Would you be willing to keep your job if your employer announced a 15.6% pay cut? Many would throw up their hands and declare, 'I'm outta here!'
What about pediatricians and other physicians who do not see Medicare patients? Bad news - no one is immune. The Medicare reimbursement tables are the standard by which most government and private health plans base their fees. It is very likely that your doctors are holding their breath waiting to learn if they are about to withstand another financial hit. Doctors who refuse to see Medicare patients but welcome other insured patients are still penalized.
In a particularly vitriolic exchange, Democrats and Republicans blamed each other for what Dr. Nancy H. Nielsen, president of the American Medical Association, said has put the country "at the brink of a Medicare meltdown."
"Seniors need continued access to the doctors they trust. It's urgent that Congress make that happen," the AMA said in ads taken out in Capitol Hill newspapers read by members of Congress and their aides.
Typically there is a last-minute Congressional reprieve from the Medicare cuts but this has not happened in 2008. Politicians and government bureaucrats are working feverishly to fix the situation but the clock is ticking. A vote to eliminate the cuts last week failed by just one vote in the Senate. As a temporary fix the Bush administration announced that Medicare will postpone the planned reduced reimbursements for 10 days by freezing all Medicare claims.
You might want to let your Representative or Senator know how you feel about this dilemma. Remember, your doctor is not asking for a pay raise. Like you, they simply want to hold on to what they earn.
Related Topics: Technorati Tags: Medicare, doctor reimbursements, Congress
Years ago, in order to curb the rapid expansion of health care costs, Congress wrote a law that instituted automatic semi-annual cuts to physician reimbursements. This approach allowed politicians to revisit the Medicare mess less frequently while escaping lobbyists and angry doctors. Well, the strategy backfired and all parties agreed that a better approach was needed to achieve comprehensive health financing reform.
Nevertheless, the law remains on the books, so every year Congress votes to rescind the programmed cuts. According to their formula, a 10.6% cut in Medicare reimbursements was due to take effect on July 1 with an additional 5% for January 2009. That represents a 15.6% pay cut for doctors treating Medicare beneficiaries. Would you be willing to keep your job if your employer announced a 15.6% pay cut? Many would throw up their hands and declare, 'I'm outta here!'
What about pediatricians and other physicians who do not see Medicare patients? Bad news - no one is immune. The Medicare reimbursement tables are the standard by which most government and private health plans base their fees. It is very likely that your doctors are holding their breath waiting to learn if they are about to withstand another financial hit. Doctors who refuse to see Medicare patients but welcome other insured patients are still penalized.
In a particularly vitriolic exchange, Democrats and Republicans blamed each other for what Dr. Nancy H. Nielsen, president of the American Medical Association, said has put the country "at the brink of a Medicare meltdown."
"Seniors need continued access to the doctors they trust. It's urgent that Congress make that happen," the AMA said in ads taken out in Capitol Hill newspapers read by members of Congress and their aides.
Typically there is a last-minute Congressional reprieve from the Medicare cuts but this has not happened in 2008. Politicians and government bureaucrats are working feverishly to fix the situation but the clock is ticking. A vote to eliminate the cuts last week failed by just one vote in the Senate. As a temporary fix the Bush administration announced that Medicare will postpone the planned reduced reimbursements for 10 days by freezing all Medicare claims.
You might want to let your Representative or Senator know how you feel about this dilemma. Remember, your doctor is not asking for a pay raise. Like you, they simply want to hold on to what they earn.
Related Topics: Technorati Tags: Medicare, doctor reimbursements, Congress
