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Reimbursement rates for physicians cut 4.4% in 2006

Ambulatory Surgery Reimbursement Update, November 8, 2005

A final federal rule from the Centers for Medicare & Medicaid Services (CMS) issued November 2 will reduce physicians' Medicare reimbursement rates by 4.4% in 2006, according to the Associated Press.

Many doctors have said the reduction may force them to stop taking Medicare patients, a concern addressed by J. Edward Hill, MD, president of the American Medical Association (AMA), in a statement issued by the AMA last week.

"In a national AMA survey, 38% of physicians say they will be forced to stop taking new Medicare patients if the first of six scheduled payment cuts goes into effect January 1," Hill said. "Over the next six years, Medicare physician payment cuts will total 26%, while at the same time the cost of caring for patients will increase 15%. These cuts leave seniors and their physicians with little in the way of options."

CMS does not have the power to stop the rate reduction, according to CMS officials.

"The existing law calls for a decrease in payment rates for physicians in response to continue rapid increases in use of services and spending growth, and Medicare does not have the authority to change this," said CMS Administrator Mark B. McClellan, MD, PhD.

To view Hill's statement, click here.

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