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Contact Congress Now to Urge Veto Override on Medicare Physician Payment Legislation
President Bush has vetoed legislation that will restore Medicare physician payment and will provide positive updates through 2009. The house of Representatives is expected to vote to override the veto this afternoon. We assume the House override will be successful, but a vote in the Senate is expected to be close. It is critical to contact your Senators now and urge them to support the override. To send a letter to your Senators, please click the take action button below.
Dear [ Decision Maker ] , As a hematologist who takes care of people with Medicare and other patients, I write to urge you to vote to override President Bush's veto of legislation that will alleviate the 10.6 percent decrease to Medicare reimbursement for physicians and to provide positive updates through 2009. The 10.6 percent payment cut will be extremely detrimental to my practice and the patients I treat. By providing 18 months of stable Medicare funding, the next Congress and Administration will have the opportunity to work together for a long-term fix of the Medicare reimbursement formula. The recent payment cuts are unsustainable and they will make it impossible for most practices to make the kinds of investment in health information technology and quality initiatives that are desired by all. I strongly urge you to vote to override the President's veto, fix these payment cuts, and provide stability through 2009 for Medicare reimbursement to physicians.
Sincerely, |
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| Background Information |
Each year, Medicare calculates physician payments using a statutory formula known as the sustainable growth rate (SGR). Key factors in determining the SGR each year are:
- The estimated percentage change in fees for physician services.
- The estimated percentage change in the average number of Medicare fee-for-service beneficiaries.
- The estimated 10-year average annual percentage change in real gross domestic product (GDP) per capita.
- The estimated percentage change in expenditures due to changes in law of regulations.
If expenditures exceed the calculated SGR, the annual update to physician payments is reduced. If expenditures are less than the target, the annual update to physician payments is increased.
The SGR is flawed and is based on an outdated calculation system. Current SGR payment updates to physicians have not kept pace with medical inflation. The SGR formula ties Medicare reimbursement to economic performance, although the medical needs of beneficiaries do not decrease when the economy slows. Instead of the SGR, payment updates should be based on increases in practice costs.
CMS published its Proposed 2008 Medicare Physician Fee Schedule Rule on July 12, 2007 and proposed reducing physician payments by more than 10 percent in 2008. The Medicare Payment Advisory Commission (MedPAC) recommended that Medicare payment rates for physicians' and other health professionals' services be increased by 1.7 percent to reflect its forecast of practice cost increases in 2008.
In December, Congress and the President agreed to provide physicians with a temporary reprieve from the scheduled payment rate cut and increase Medicare physician fees by 0.5 percent until July 1, 2008. However, the legislation did not address future physician fee cuts, which means the cut went back into effect beginning July 1.
On June 26, the House passed legislation stopping the July 1st 10.6 percent reduction in Medicare physician fees and providing a 1.1 percent increase for calendar year 2009. The bill passed by an overwhelming margin, with 355 members voting in favor of the legislation and only 59 opposing it. On July 9, the Senate passed the same bill with a final vote of 69 to 30. On July 15, President Bush vetoed the legislation. It is now being sent back to the House and Senate for a vote on a potential veto override.
