09.18.07

Cantwell Calls on Congress to Overturn Cuts to Medicare Physician Reimbursement Rates

700,000 Medicare Patients in WA to be Affected by Rate Cuts

WASHINGTON DC – Tuesday, Senator Maria Cantwell (D-WA) called on Congress to overturn scheduled cuts in reimbursements to doctors who treat Medicare patients and preserve access to care for millions of seniors, veterans, and disabled individuals. In a letter to Senate Finance Committee Chairman Max Baucus, Cantwell asked that the reimbursement rate decrease be addressed before the end of the year.  
 
“Seniors, veterans and the disabled who rely on Medicare for health care access are having a harder time finding a doctor who will accept Medicare coverage,” said Cantwell. “With the cost of health care rising and reimbursement rates getting cut every year, we should be making access to care easier for those who need it most, not more difficult.”
 
In Washington state, these cuts will affect over 700,000 Medicare patients, and over 300,000 veterans currently receiving health care under TRICARE. The state’s physicians will lose $240 million for the care of Medicare patients over the next two years due to the scheduled 10 percent cut in payments for next year and in 2009, an additional five percent cut for this important medical care. 
 
Scheduled Medicare reimbursement rate cuts are the result of a sustainable growth rate formula that sets target spending levels under Medicare.  The formula was intended to control spending on physician services in order to keep the Medicare program sustainable in the long-term. However, the volume of physician services has increased more than anticipated, triggering drastic cuts to physician reimbursement rates.
Last year, Cantwell worked to overturn a scheduled 5.1 percent cut, and has made clear her opposition to these cuts going forward. Two years ago, she introduced the Affordable Access to Medicare Providers (S.1574) to block cuts and actually increase reimbursement rates doctors receive for caring for Medicare patients.   
The full text of Senator Cantwell’s letter follows below:
 
 
September 18, 2007
 
 
Max Baucus
Chairman
Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, DC 20510
 
Dear Chairman Baucus,
 
Thank you for your leadership in guiding the Children's Health Insurance Program Reauthorization Act through the Senate. Your work to extend health coverage to over 3 million uninsured children is deeply appreciated by me and thousands of families across Washington state. 
 
I also thank you for your continued attention to the Medicare physician reimbursement issue. As you are aware, physician payments are scheduled for a 10 percent cut in 2008 and an additional 5 percent in 2009. If implemented, doctors in my state would lose approximately $240 million in funds, a devastating blow to our health care network.
 
It is critical that Congress act to overturn these cuts and preserve access to care for millions of seniors, disabled individuals, and veterans. Physicians in my state and other regions are already penalized under the current payment formula for providing quality, efficient care. Additional cuts will only exacerbate the difficulties patients face when seeking a physician who will accept Medicare coverage. 
 
I look forward to working with you in the Finance Committee to address the impending physician payment cuts this fall.   
 
 
Sincerely,

U.S. Senator Maria Cantwell (D-WA)
 
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