Medicare/Medicaid

Medicare and Medicaid
This year marks the 43rd anniversary of the establishment of Medicare and Medicaid.  These two programs provide vital health care benefits to millions of Americans.  In fiscal year 2008, the Medicare program will cover an estimated 44.6 million persons, while Medicaid will pay for medical services and long-term care for more than 63 million persons. 

For the past six years, federal spending has outrun federal revenues.  In the long term, projections suggest that if current policies remain unchanged, the United States faces a major fiscal imbalance, largely due to costs associated with the impending retirement of the large baby boom generation and rising health care costs.

Former Comptroller General David Walker has noted that each year Congress does not act to reform its entitlement obligations, the size of the debt the next generation of Americans faces grows by $2 trillion.

Congress needs to act in a bipartisan fashion to protect and preserve these vital programs.  Medicare and Medicaid need good management and innovative ideas to ensure they remain solvent.  Prudent actions now will save taxpayers money in the long term while meeting the health care needs of those who cannot care for themselves and millions of seniors.   

 

Medicare Physician Reimbursement
Under current law, annual payment updates for physicians are linked to a formula (typically referred to as the Sustainable Growth Rate, or SGR formula).  Under the formula, if cumulative spending on Medicare physician services since April 1996 exceeds cumulative target expenditures over the same period, a reduction in the update for physician payments is required (i.e., a reduction in the conversion factor). This has been the case since 2002; however, Congress has overridden the reduction since 2003. I have consistently voted to override the scheduled reductions in reimbursement rates for physicians. 

Unless Congress acts to implement a long-term fix to this issue, each year we will be faced with the need to pass a more expensive patch in order to avoid drastic cuts to physician reimbursement rates.  This will make it more difficult for seniors to see doctors because more doctors will stop accepting Medicare.

I am very concerned about Medicare physician reimbursement rates.  It is disheartening to know that many physicians are feeling a financial burden brought on by flawed Medicare reimbursement policies.

I strongly support a long-term fix to the Medicare physician reimbursement rate issue, and will continue working hard to try and find a way to get a long-term solution to the flawed Sustainable Growth Rate (SGR) formula in place.