Physician Groups Hint of Exodus from Medicare if Congress Lets Fee Cut Start Again

In a letter to Democratic and Republican leaders of the House of Representatives, the AMA and 116 other physician groups hinted if Congress allowed an automatic 23 percent fee cut to go into effect on Dec. 1, many physicians might change their status to non-participating.

The letter noted the impending cut comes at a time when physicians have the option to change their Medicare status. "Hundreds of thousands of physicians will be considering whether they can continue accepting Medicare rates at the same time that massive payment cuts are scheduled to take effect," the letter said.

It noted physicians' exasperation with Congress' frequent short-term fixes this year. One lasted just a month and three came only after the cuts went into effect. As a result, many practices had to seek loans to meet payroll expenses, lay off staff or cancel capital improvements, the letter said. It added when payments resumed, there were delays in sending out retroactive adjustments.

Congress has gone into recess to campaign for the Nov. 2 elections and will return only after the elections for a lame-duck session. On Jan. 1, the automatic fee cut rises by 6.5 percent. "Physician practices simply cannot absorb cuts of this magnitude," the letter stated.

If Congress opts for another temporary fee fix, physician groups advised that it should last at least through the end of 2011, to "provide time for Congress and the physician community to develop a long term solution."

The letter was signed by 66 national physician groups and 51 medical societies representing all states and the District of Columbia.

Read the physician groups' letter on the physician fee cut (pdf).

Read more coverage of physician fee cuts:

- With Fee Cut Looming, AMA Shows How to Become Medicare Non-Participant


- Shoulder Specialist Dr. Michael Gross Discusses Two Major Issues of Concern

- Medicare Contractors to Again Hold Physician Fee Schedule Claims for 10 Days While Congress Works to Delay Cuts

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