Health Reform Begins with Deepest Medicare Cut In History
Struggling to make it through in the midst of an ever-worsening budget impasse over Medicare reimbursement, the Center for Medicare & Medicaid Services (CMS) couldn’t wait any longer. CMS is now implementing a 21% cut in physician payments, which will affect an estimated 50 million claims. Claims that were held back since June 1 will be the first to feel the effects of the cuts.
In the late 1990’s the funding formula for Medicare reimbursements was first enacted in conjunction with the Balanced Budget Act. However, even at that time it was thought by some to be flawed. Today the formula is thought to be seriously flawed, and is growing more and more out of sync with its original intended purposes with each passing year.
Medicare Cuts Could Affect Quality of Care
Even though Medicare has instituted this drastic cut it too may stand to be on the losing side of the board as well, considering there are already a huge number of medical practices that currently do not take on Medicare’s elderly patient population.
Participating physicians will see a direct impact of the 21% cut with the average office visit now being reimbursed at about $8.00 less than what they were in 2007. Medicare may also feel the brunt of this unresolved state of affairs.
If a resolution is indeed reached, and the cuts reversed, they are looking at having to swallow about .30 cents per claim that is reprocessed. This translates out to a staggering potential of $15 million dollars for the first 50 million claims alone.
Only time will tell how it will all play out in the end, if there ever will be an end. In the meantime, there is no way for anyone, including physicians, patients and even Medicare to avoid the huge impact of this monumental move.
Tags: congress, Medicaid, medicare, Medicare cuts
