Medicare reductions are technically in effect now since April 1 when it was scheduled to be slashed by 21%. Fortunately, physicians are currently being protected from the onslaught by the CMS (Center for Medicare and Medicaid Services) who are delaying claims submitted for this month in the hopes that the decrease in the fee schedule will be negated…at least temporarily.
Private health practices will find it increasingly difficult to stay solvent if they depend on Medicare and third party payers to subsidize their operating costs.
Not in Medicare yet and feel that you are not affected?
Wrong!!! Most insurance companies base their fee schedule on Medicare rates, so if you are covered currently under a policy with private insurance, you are still affected.
The House has approved a bill postponing Medicare reductions but is waiting for Senate approval. Senator Baucus, chairing the Senate Finance Committee, has proposed an amendment to delay the bill for an extra month.
What we need is to devise a fair reimbursement plan to healthcare providers instead of delaying (but keeping in place) a cut to the reimbursement plan that is currently in effect.
Having medical insurance will be meaningless if there is no healthcare provider to see you.