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Jamie Dupree

Senate Knocks Doc Fix

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Jamie Dupree
@ October 22, 2009 12:00 AM
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In what might be a preview of the finger pointing on health care reform, the Senate on Wednesday derailed a plan that would scrap $247 billion in planned cuts to Medicare doctor payments over the next ten years.

Democratic leaders immediately pointed the Political Finger Of Blame at the American Medical Association, charging the AMA failed to deliver the votes of Republican Senators.

In fact, even though some GOP Senators were cosponsors of the plan, not one Republican voted for a motion to shut off debate on the bill, as that cloture effort lost 47-53, thirteen votes short of the 60 needed to force final action.

The main reason for the opposition was the fact that the plan from Democrats wasn't paid for, as the money would have just been added to the deficit.

The Democrats who voted no were Bayh (IN), Byrd (WV), Conrad (ND), Dorgan (ND), Feingold (WI), Kohl (WI), McCaskill (MO), Bill Nelson (FL), Tester (MT), Warner (VA), Webb (VA) and Wyden (OR). Independent Joe Lieberman (CT) also voted against the plan.

Without any action, Medicare payments to doctors will be cut by 21% next year, which obviously has the doctors pretty aggravated. Why that much?

The payment reductions were part of a 1997 effort, spearheaded by Republicans, to squeeze savings out of Medicare.

But like many efforts to save money in Medicare, Congress then finds a way to postpone or avoid those spending reductions, and after 12 years, that added up to a 21% cut, in theory.

In July 2008, the Congress put off a cut of over 10% in doctor payments that not only was scheduled to go into effect, but the deadline had actually passed during that Summer.

Congress had failed to do anything about the issue back in 2007, and simply punted it into the election year.

In December of 2006, Congress enacted another short term fix, avoiding what was then an over 5% cut in Medicare physician payment rates.

In December of 2005, Congress enacted another short term fix, avoiding what was then an over 4% cut in Medicare physician payment rates.

In December of 2003, as part of the Medicare Prescription Drug bill, Congress approved a two year fix, which avoided over 4% in cuts to Medicare physician payment rates.

I think you get the picture.

So when people talk about Medicare savings that will be made now, just remember that those savings might not exactly come true.

You can thank your member of Congress for that.



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