Doctors say Medicare reimbursements are not keeping pace with inflation or the cost of providing care. Many cite the skyrocketing costs of malpractice insurance. Last year, one of the nation's largest insurers raised premiums an average of 27%. The impact of the Medicare cuts are magnified because Medigap insurers link their payments to the amounts paid by Medicare.

While legislation to increase Medicare payments to doctors has broad support in Congress, the Bush administration wants such increases offset by cuts in payments to other providers. Payments to nursing homes, health maintenance organizations, home health care agencies, and federal teaching hospitals, however, also have recently or currently faced cuts. In addition, Congress is struggling to find the money to add a prescription drug benefit to Medicare.

TSCL Member Alert:
TSCL is highly concerned that the Medicare budget set by the Bush administration and GOP leadership is too low. The White House estimates that total Medicare spending for the next decade, assuming no change in current policy, is $300 billion less than the budget estimated by the non-partisan Congressional Budget Office (CBO). Unrealistically low targets for Medicare expenses can translate into unrealistically low payments to healthcare providers and no money for a prescription drug benefit. TSCL Members are urged to contact their elected officials to voice their concern that access to doctors, other health care providers, and affordable prescription drugs must not be put at risk.

Sources: "Doctors Shunning Patients With Medicare," Robert Pear, "The New York Times," March 17, 2002. "Bush Budget's Law Growth Rate for Medicare is Questioned by Lawmakers," Robert Pear, "The New York Times," February 6, 2002.

For a related story see: "Nursing Homes Lack Adequate Staff," at http://www.tscl.org/NewContent/101494.asp.

May 2002