D-Day for Medicare Reimbursement Action Fast-Approaching

If Congress fails to act, Medicare will cut physician payments by about five percent on January 1, 2007, with cuts totaling nearly 40 percent through 2015. MSDC, the AMA and all of organized medicine are fighting aggressively to achieve a positive update on Medicare reimbursements. The Medicare physician payment system must be reformed. If not, Medicare payment rates in 2007 will have fallen 20 percent below increases in physicians’ costs since 2001. For this reason, MSDC will not be satisfied with a mere “freeze” in the reimbursement rate. The flawed formula that determines reimbursement rates must be replaced with a system based on annual increases in practice costs as recommended by the Medicare Payment Advisory Commission.

When you receive this issue of MSDC Newsline, go to www.msdc.org to read the most current information on this fast-moving issue.

Deadline to Change Medicare Participation Status Is Dec. 31. Physicians who wish to change their Medicare participation status for 2007 must do so by December 31, 2006. Physicians may only change their Medicare status during Medicare’s annual open enrollment period. A participating physician must accept Medicare allowed charges as payment in full for all their Medicare patients. A non-participating provider can choose to accept or not accept assignment on Medicare claims on a claim-by-claim basis. Once made, Medicare participation decisions are binding for the entire year. CLICK HERE for information.