AMA Scores Victory on Medicare Physician Payments

In a major victory for organized medicine, the Obama administration announced last week that the cost of physician-administered drugs will be removed from Medicare's sustainable growth rate (SGR) calculations retroactive to the 1996 base year. The announcement came as part of the Centers for Medicare & Medicaid's release of its 2010 Medicare physician payment proposed rule. The move, which the AMA has been calling for since 2002, will avert many of the payment cuts that have been forecast because of the SGR and substantially reduces the cost the Congressional Budget Office would assign to legislative proposals to permanently repeal the SGR. AMA President J. James Rohack, MD, hailed the action, noting that it paves the way for Congress to ensure stable Medicare physician payment rates that reflect increasing practice costs and preserve seniors' access to care. "Our nation has a historic opportunity for health reform this year," Dr. Rohack said, "and strengthening Medicare should be a cornerstone of this effort."



Source: AMA Health System Reform Bulletin, July 7, 2009