It’s no joke for doctors that today marks the day that Medicare’s 21% reimbursement pay cuts were to go into effect.
Congress left for its Easter recess without voting to delay the scheduled April 1 start of lower payments to docs. The agency that oversees Medicare has effectively delayed the cuts by deciding not to pay claims for the first 10 business days in April. When Congress returns, it’s still expected to adopt another law to delay the cuts for longer, as it has done annually for years now.
So what does the delay in paying claims mean for doctors? In the short-term, their cash flow shouldn’t be disrupted much, according to the Centers for Medicare and Medicaid. Typically claims are paid no sooner than 14 calendar days anyway, so doctors shouldn’t see a dip in their income unless Congress fails to act with a new delay in the next two weeks, the agency says.
But the long-standing threat of Medicare cuts are weighing on doctors, say medical societies.
“It’s tough,” Andrew LaMar, spokesman for the California Medical Association, told the Health Blog. “Imagine if every month you didn’t know what your paycheck is going to be.”
The American Medical Association and others urged repeatedly for a permanent repeal of Medicare cuts throughout the health-care bill legislative process, but it wasn’t included as part of the final bill.
David Kloth, past president of the American Society of Interventional Pain Physicians, told the Health Blog that private insurers base their rates on those set by Medicare, so a cut in Medicare payments would likely result in reimbursement cuts across the board. And if their revenue drops significantly, docs may reduce the number of Medicare patients they see or have to lay off employees, he says.
“If they’re not careful, they’re going to drive doctors out of Medicare and Medicaid,” says Kloth.
Photo: Associated Press
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