DJP 12-29-2005 AMA Update - Medicare cuts-4.4% go into effect January 
1, 2005; Reflections; Lagniappe (re: Richard Deem)

Congress fails to act on Medicare cuts!  (Support of Senate and House but procedural issues prevented passage!)

Continue to speak to your congressional delegation before Congress resumes in January.

This occurred despite all the tremendous efforts of Organized Medicine.  Our patients no doubt will find it harder to locate a physician taking Medicare patients if this cut is not fixed quickly.  AMA and the entire Federation will continue to work hard to eliminate this cut when Congress returns and encourage Congress to make the fix retroactive to January 1.  AMA has sent an email update to the executive directors today giving the latest information.

DJP REFLECTIONS:

Each year we have to beg Congress to not cut the payment for care to our patients.  Tremendous energy is spent on this endeavor each year.

Of course, we know the SGR has to be discarded and a fair method of payment started.

American is a Free Enterprise land of liberty and the hallmark of Free Enterprise is the right to privately contract.  Yet physicians 
cannot stay in Medicare unless they agree to the terms of Medicare price-fixing.

As long as we let Congress define the debate, we will lose.  Congress defines the debate as giving Congress the right to set our fees.
AMA already has good policy stating that physicians should have the right to privately contract, H-165.916.  Also, AMA policy would 
encourage Congress to put Medicare and Medicaid on a defined contribution basis, H-165.985 and others.

Thus, the government would allocate a certain amount of money and everyone on government programs would use that money to buy their own plan or set up a Health Savings Account with a high-deductible second layer insurance coverage.  Physicians and patients can then negotiate the final fee as happens in the rest of society in America.  Even if Congress did not have the courage to do this, an improvement would be to pay patients a certain amount for a treatment (like the old indemnity plans) and the physician would then balance-bill.  The 
ideal is to have all money go to patients and the patient pays the physician.


Most of the leaders from yesteryear who advised this and warned of what is happening now are no longer alive to see their prediction 
come true.  Leaders such as Mike Smith MD, and Jose Garcia-Oller, MD are gone but Edward Annis, MD still sits in our AMA HoD and we should listen to him more.)

If Congress won't change their methodology, it is imperative that we work together to elect individuals who will respect physicians and 
patients.

The current course of Congress will result in less and less doctors treating patients on government programs because the doctors won't be 
able to afford to subsidize the care of those patients.

I made the above comments about changing the framework of debate at the last OSMAP meeting.  The response was overwhelming positive and I believe those views are held by almost all practicing physicians who are not on a salary from government or other large entity and who 
have to personally meet their practice expenses each month.

End of Refections.

Addendum:

See comments of AMA Board Chair, Dr. Duane Cady, in AMNews giving the accomplishments of 2005.  A well-done article.  Check it out.  The passage of the Patient Safety and Quality Improvement Act of 2005 was a great accomplishment!

Also, here are some quotes from AMA's web site and associated links 
concerning the Medicare cuts:
http://capwiz.com/ama/mail/oneclick_compose/?alertid=8104801

Take action -- AMA in Washington

Stop Medicare physician payment cuts and protect patients. Tell your federal representatives to fix Medicare’s broken payment system

Congress failed to fulfill its responsibilities to Medicare patients and their physicians. On Jan. 1, the 2006 Medicare physician payment 
cut begins, and the AMA is deeply concerned that this will harm seniors' access to physician care. There is bipartisan agreement in 
both the U.S. House and Senate that this cut must be stopped to preserve seniors' access to care, and both the House and Senate have 
passed legislation to stop the cut.


Procedural issues in the Senate and House prevented final action on this critical access to care issue for Medicare patients.  Tell your representatives to immediately take up this issue when Congress returns to halt the payment cuts and retroactively adjust payments. The AMA will continue to strenuously advocate for a fair physician payment formula based on practice costs, as well as continue to advocate for sound quality improvement initiatives.  Physicians are the foundation of Medicare, and Congress needs to act promptly to preserve seniors' access to care. 


Take action today!  Use the form below to send an e-mail to your legislators.  Tell them to protect America’s patients by stopping 
Medicare physician cuts!

Excerpt from AMA President Dr. Edward Hill (AMA press release)
http://www.ama-assn.org/ama/pub/category/15834.html

Congress has failed to fulfill its responsibilities to Medicare patients and their physicians. On Jan. 1, the 2006 Medicare physician payment cut begins, and the AMA is deeply concerned that this will harm seniors' access to physician care. There is bipartisan agreement in both the U.S. House and Senate that this cut must be stopped to preserve seniors' access to care, and both the House and Senate have passed legislation to stop the cut.


Procedural issues in the Senate and House prevented final action on this critical access to care issue for Medicare patients.
.....
The 2006 Medicare physician payment cut of 4.4 percent is the first of six years of planned cuts totaling 26 percent. During this same 
time, practice costs will increase at least 15 percent.
.......
 

 

LAGNIAPPE:
If by chance you were cut off from the news on vacation or traveling abroad, Richard Deem is the new AMA SVP of Advocacy in Washington, DC.  A very street-wise nice person who helped me tremendously during my 9 year AMA tour of duty.

FOR IMMEDIATE RELEASE                                            
December 20, 2005


AMA NAMES RICHARD A. DEEM SENIOR VICE PRESIDENT, ADVOCACY

WASHINGTON, D.C. – The American Medical Association (AMA) announces that Richard A. Deem has been named Senior Vice President of Advocacy.

With nearly 30 years of Washington experience, Deem will oversee the political, legislative, governmental affairs, health policy and 
private sector advocacy activities located in the Washington, D.C. and Chicago offices of the AMA.

“Success for the AMA is directly connected to our success on the legislative and policy front.  By having Rich Deem lead the advocacy 
team for the AMA, we will be well positioned to deliver for our members, and accomplish the goals outlined in our health care 
advocacy agenda,” said Michael D. Maves, M.D., M.B.A, executive vice president and chief executive officer of the AMA.

Deem is known in Washington and around the country as a tireless and highly respected advocate for physicians and their patients. In 1984, 
Deem joined the AMA after working in the U.S. Senate and in the U.S. Department of Health & Human Services.

Deem resides in Arlington, VA, with his wife Cheryl and son Matthew.


# # #


For more information, please 
contact:                                        Brenda L. Craine, 
Director
                                                                        
                          AMA Media Relations
                                                                        
                          202/789-7447

                                                                        
                          Katherine Hatwell, Sr. PIO
                                                                        
                          AMA Media Relations
                                                                        
                          202/789-7419
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