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Senior Citizen Politics

Republicans, Insurance Lobby Slam Shut Effort to Stop Medicare’s 10% Pay Cut for Physicians

Sen. McCain could have stopped the pay cut but failed to show for the vote; AMA says docs will limit Medicare patients

   
 

One Doc Says Enough's Enough - Leaving Practice

Says Medicare already only reimburses about 30% of his fees...insurance companies not paying enough either. A lot of doctors are retiring, he said, because they can't meet their overhead. Read more below news story.

 

June 27, 2008 – The insurance industry lobby, with a lot of help from Republican senators, appears to have managed to cut Medicare’s pay to physicians by more than 10 percent by the end of June. Although approved by a majority of the Senators present, the legislation failed by one vote to reach the 60 needed to close debate and call for the final vote. President Bush had promised to veto the bill that earlier passed the House by a gigantic margin of 355-59, as many Republicans defied the President’s threat.

Sen. John McCain, the almost certain Republican nominee for president, could have made up the one-vote difference in the Senate but he was absent for the vote. He has also refused comment. Sen. Barack Obama, the presumed Democratic nominee, voted for closing the debate.


Daily Report: Senate Fails to Take Up Legislation to Delay Medicare Physician Fee Cut

 

Daily Reports

KaiserNetwork.org

 

A House-passed bill (HR 6331) that would delay a 10.6% reduction to Medicare physician fees failed by one vote to receive the 60 votes in the Senate required to gain cloture on Thursday, CongressDaily reports. The House had passed the measure by a veto-proof margin earlier this week.

The bill is similar to a measure (S 3101) proposed by Senate Finance Committee Chair Max Baucus (D-Mont.) that also failed to receive enough votes to invoke cloture (Edney, CongressDaily, 6/27). The final vote on Thursday was 58-40; however, Senate Majority Leader Harry Reid (D-Nev.) changed his vote to no to ensure he could reintroduce the bill under procedural rules (Armstrong [1], CQ Today, 6/26).

Sen. Judd Gregg (R-N.H.) offered a 30-day extension of the current pay level, but Reid objected (Edney, CongressDaily, 6/26).

According to CongressDaily, "Democrats hoped the impending deadline and unexpected overwhelming support in the House would put enough heat on GOP senators to support cutting off debate" (CongressDaily, 6/27).

Missing Votes

Presumptive Republican presidential nominee Sen. John McCain (Ariz.) and Sen. Edward Kennedy (D-Mass.) were not present for the vote. Presumptive Democratic presidential nominee Sen. Barack Obama (Ill.) voted for cloture on the measure.

McCain was in Ohio campaigning during the vote and Kennedy is undergoing cancer treatments after recently having a brain tumor removed. According to the New York Times, "McCain's absence made it likely that Democrats would seek to hold him at least partly responsible for the outcome." The Times reports that a McCain spokesperson said he had no immediate comment (Herszenhorn, "The Caucus," New York Times, 6/26).

Session Extension

Reid on Thursday told senators to clear their calendars for the weekend and prepare for another cloture vote on Sunday, according to a spokesperson for the lawmaker. According to CongressDaily, Senate Republicans have objected to bringing the legislation to the floor on Friday.

Meanwhile, Reid said that he cannot file for cloture until midnight due to other legislative efforts (CongressDaily, 6/26). A Sunday vote could push final action on the bill into next week (Armstrong [2], CQ Today, 6/26).

Baucus said that the House measure is the Senate's only option to avert the fee cut before the Fourth of July recess because the House has already left for recess. "There is no alternative," Baucus said, adding, "This is the only train in the station" (Armstrong [1], CQ Today, 6/26). Reid said that the Senate is "going to finish Medicare" before it adjourns for the recess (Armstrong [2], CQ Today, 6/26).

 

Related Stories

 
 

Senate Republicans Block Bill That Would Delay Medicare Physician Payment Cut

Sends it back for further negotiations between Republicans and Democrats

June 13, 2008


Bush To Veto Any Legislation Including Medicare Advantage Cuts

Health and Human Services Secretary tries to stop Democrat bill restoring physician’s pay cut

May 30, 2008


Read more on Politics for Senior Citizens

 

White House Reiterates Veto Threat

The White House on Thursday again threatened to veto the measure because it makes cuts to indirect medical education payments and imposes limitations on so-called private fee-for-service plans under Medicare Advantage.

The Bush administration said that the bill would "reduce access, benefits and choices for many of the approximately 2.25 million beneficiaries who have chosen to enroll in" the plans (Armstrong [1], CQ Today, 6/26). The measure would cut about $14 billion over five years from payments to some plans under MA (Lueck, Wall Street Journal, 6/27).

Although Finance Committee ranking member Chuck Grassley (R-Iowa) voted against cloture, he said, "I personally think the White House has drawn lines in the sand that are unreasonable."

Compromise Bill

Baucus and Grassley reached a tentative agreement on a compromise bill earlier this week, but it was abandoned in the Senate after the House approved its measure by a veto-proof margin. According to CongressDaily, "The compromise would have avoided a promised veto of the House-passed measure" (CongressDaily, 6/27).

Republicans "were upset" that they did not have the option to vote on the compromise legislation, according to CQ Today (Armstrong [1], CQ Today, 6/26). However, CQ Today reports that "there may not be enough time" for the bill to pass the Senate and the House before the recess. CQ Today reports that Reid "could ultimately ... accept Gregg's plan for a 30-day extension of the current doctor payment rates" (Armstrong [2], CQ Today, 6/26).

Retroactive Patch

Congress also has the option of returning after the recess and passing a bill that would retroactively restore the physician payment levels and block the cut. However, such a move "will likely create an administrative headache" and "ha[s] long been seen as an undesirable outcome," according to CQ Today (Armstrong [1], CQ Today, 6/26).

On Radio: NPR's "Day to Day" on Thursday reported on the Medicare physician fee cut (Rovner, "Day to Day," NPR, 6/26).


AMA outraged at Senators who put health insurers before Medicare patients

"The physicians of America are outraged that a group of Republican senators followed the direction of the Bush Administration and voted to protect health insurance companies at the expense of America’s seniors, disabled and military families,” said Nancy H. Nielsen, MD, President, American Medical Association.

"These senators leave for their 4th of July picnics knowing that the most vulnerable Americans are at risk because of the Senate's inability to act to stop drastic payment cuts for health care services that are needed by our Medicare and TRICARE patients.

"The House voted to preserve access to care for Medicare patients in a bipartisan landslide vote to pass H.R. 6331 by an overwhelming margin of 355 to 59. The House made seniors, the disabled and military families a top priority. The AMA appreciates the courage of the 59 Senators, including 9 Republicans, who voted to put patients ahead of partisan politics and vote for H.R. 6331.

"Today, thanks to some senators, we stand at the brink of a Medicare meltdown. On July 1 – just four days from now – the government will slash Medicare physician payments by 10.6 percent, forcing many physicians to make the difficult choice to limit the number of Medicare patients in their practices.

"The Senate must return from their recess and make seniors’ health care their top priority. For doctors, this is not a partisan issue - it's a patient access issue."

One Doc Says Enough's Enough - Leaving Practice

   
 

One of an increasingly small number of primary care physicians, Dr. David Haldorsen, shown here with patient Carol Ceballos on Friday, is closing his practice after 15 years.Times Herald-Record/CHET GORDON

 

June 27, 2008 – “A longtime Monroe physician is retiring, taking with him his mantle as one of the last doctors in the area to make house calls, and a view of a health care system driving doctors out of the profession,” according to a report by Christian Livermore in The Times Herald-Record of Middletown, New York

Dr. David Haldorsen will close his practice after almost 15 years. He will continue his Spring Valley practice for the time being, but will probably close that when he sells the house from which he operates it, said medical manager Joan Thiel.

Inadequate reimbursement rates and rising costs made it too difficult for him to support the practice.

"I see lots of patients, but between all the expenses, I'm losing money," he said, "and I don't have time to increase my hours to grow the practice."

The gulf between what it costs him to treat a patient and what insurance companies actually pay has become too wide — Medicare reimburses about 30 percent of his fee, he said. A lot of doctors are retiring, he said, because they can't meet their overhead.

"There's this thing about doctors all being rich," he said. "Some of them are, the specialists probably, but the others are just getting by."

  ●  Click to updated story and blog comments at Times Herald-Record

 

"Daily Report reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

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