Letter re: Medicare Payment Cuts

(6.18.02) This group letter was sent to Representatives Thomas and Tauzin regarding Congressional efforts to avert further cuts in Medicare payments to physicians and other health professionals.

June 18, 2002

The Honorable William Thomas
Chairman
Committee on Ways and Means
1102 Longworth House Office Building
U.S. House of Representatives
Washington, DC 20515

The Honorable Billy Tauzin
Chairman
Committee on Energy and Commerce
2125 Rayburn House Office Building
U.S. House of Representatives
Washington, DC 20515

Dear Mr. Chairmen:

The undersigned groups appreciate your efforts with Representatives Nancy Johnson and Michael Bilirakis to avert further cuts in Medicare payments to physicians and other health professionals. We understand that Congressional budget constraints precluded a long-term fix and therefore support the interim solution you have included in the Medicare Modernization and Prescription Drug Act of 2002. We look forward to working with you to design a long-term solution and avoid a new round of cuts that would begin in 2006 if additional legislation is not enacted in the meantime.

As you know, physicians' and other practitioners' payments were cut by 5.4% this year and Medicare actuaries are predicting additional cuts of nearly 15% over the next three years. Under the Johnson-Bilirakis-Tauzin bill, payments instead would increase by about 6% from 2003 through 2005 so that payments in 2005 would be more than 20% higher under your bill than under current law. Over five years, more than $20 billion would be restored to spending on the services our members provide to Medicare beneficiaries.

After 2005, however, payments would decline precipitously and we are understandably anxious to avoid this so-called cliff. Several actions by the Administration could alleviate the size of the cliff and reduce the cost of a long-term solution that would prevent such predicaments in the future. We intend to continue urging the Administration to take such steps and greatly appreciate your efforts toward that same goal.

The regulatory reforms included in the Johnson-Bilirakis-Thomas-Tauzin bill also will bring much needed relief to practitioners forced to take time away from patients in order to cope with Medicare paperwork. These provisions address many of our concerns about lack of fairness and due process in Medicare contractor investigations and we are pleased they are included in the bill.

Ultimately we must modify the current system so that payments are reasonably related to costs and Medicare beneficiaries' access to high quality medical care does not deteriorate. We are grateful for the steps you have taken to improve payment rates in the next few years and appreciate your commitment to make additional corrections in the next three years. We pledge our continued cooperation in that endeavor.
Sincerely,

American Academy of Allergy, Asthma and Immunology
American Academy of Audiology
American Academy of Dermatology Association
American Academy of Facial Plastic and Reconstructive Surgery
American Academy of Family Physicians
American Academy of Neurology
American Academy of Ophthalmology
American Academy of Otolaryngology-Head and Neck Surgery
American Academy of Physician Assistants
American Association for Thoracic Surgery
American Association for Vascular Surgery
American Association of Clinical Urologists
American Association of Neurological Surgeons
American College of Allergy, Asthma and Immunology
American College of Cardiology
American College of Chest Physicians
American College of Nurse-Midwives
American College of Nurse Practitioners
American College of Obstetricians and Gynecologists
American College of Occupational and Environmental Medicine
American College of Osteopathic Family Physicians
American College of Osteopathic Surgeons
American College of Physicians-American Society of Internal Medicine
American College of Radiology
American College of Rheumatology
American College of Surgeons
American Gastroenterological Association
American Geriatrics Society
American Medical Association
American Medical Group Association
American Optometric Association
American Occupational Therapy Association
American Osteopathic Association
American Physical Therapy Association
American Podiatric Medical Association
American Psychiatric Association
American Society for Gastrointestinal Endoscopy
American Society for Reproductive Medicine
American Society of Anesthesiologists
American Society of Clinical Oncology
American Society of Hematology
American Society of Plastic Surgeons
American Speech-Language Hearing Association
College of American Pathologists
Congress of Neurological Associations
Emergency Department Practice Management Association
Infectious Diseases Society of America
Joint Council of Allergy, Asthma and Immunology
Medical Group Management Association
National Association for Medical Direction of Respiratory Care
National Association of Social Workers
North American Society of Pacing and Electrophysiology
Renal Physicians Association
Society for Cardiac Angiography and Interventions
Society for Excellence in Eyecare
Society for Vascular Surgery
Society of Diagnostic Medical Sonography
Society of General Internal Medicine
Society of Thoracic Surgeons
Society of Vascular Technology