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AMA urges action on physician payment cut

Ambulatory Surgery Reimbursement Update, October 3, 2006

The chair of the American Medical Association (AMA) expressed concern that Congress is heading home for the upcoming elections without passing legislation that would prevent pending Medicare physician payment cuts from beginning January 1, 2007, according to a statement issued by the AMA last week.

The association is urging Congress to take action against the cuts during the November "lame-duck" session.

"A national AMA survey found that 45% of physicians will be forced to limit the number of new Medicare patients they accept into their practice when the cut begins January 1," according to Cecil B. Wilson, MD, AMA chair. "Physicians cannot continue on the current path of being paid less than the increased cost of providing care without serious consequences for patients."

The first cut of 5.1% is expected to occur on January 1, 2007. It is the first of nine years of planned cuts that would total nearly 40%. The cost of providing care will increase by 20% over that time, according to government estimates.

To read the AMA statement, click here.

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