Medicare Reimbursment Rates and Deficit Spending
http://thedianerehmshow.org/shows/2010-06-15/medicare-reimbursment-rates-and-deficit-spending
The Senate has, so far, failed to defer scheduled 21% payment cuts to physicians treating Medicare patients: Physician reimbursement rates and the political crossfire over new government spending.
Guests
Alice Rivlin
senior fellow, Brookings Institution,
vice chair, Board of Governors, Federal Reserve System (1996-99);
director, White House Office of Management and Budget (1994-96); and founding director, Congressional Budget Office (1975-83).
Stuart Guterman
Assistant Vice President,
Director, Program on Payment System Reform,
The Commonwealth Fund
Ron Pollack
is Executive Director of Families USA, a national non-profit organization for health care consumers.
Brian Riedl
senior budget analyst, The Heritage Foundation

Comments
Please familiarize yourself with our Code of Conduct and Terms of Use before posting your comments.
As a radiologist in the DC area these proposed medicare cuts are already influnecing our practice. By consolidating our outpatient offices to reduce our overhead costs this will directly affect patient care. This will only fuel what I call the "healthcare tsunami" . As the baby boomers grow older, 30 million plus additional insured patients are added to the mix and the limited number of healthcare providers available in the country all will affect our access to quality healthcare.
Jake
Your guests fail to mention one of the largest causes of increased volume of services: The ease of upcoding a visit or claiming it was more complex than it was, combined with the overpayment for procedures which may be unnecessary or detrimental. As primary care and visit payments go down, most peoply supplement their income by working for administrators who insist on overdocumentation to fool billing auditors into thinking a simple visit is complex. Those of us who lived on complex primary care, doing what is necessary for complex patients to be as well managed as possible in this system, faced constant threats of cuts and no raise for a decade, while others did whatever they needed to instead of the exgtra work of doing good primary care. What would you do if it litterally took an act of Congress to not get a cut every year, while the system punishes you for doing what is best for your patients? Eventually I closed my practice. Yes doctors will still take Medicare in the cities where they can make up for it by overbilling and overproviding.
Bridget Reidy MD
I have three questions concerning this issue:
1) Concerning the speech therapist who called in and said she couldn't afford to take a 21% cut in pay, why didn't any of you ask her what her annual net pay is?
2) Why isn't it abandonment for a doctor to say he or she will not treat a patient in need simply because of money?
3) If we allow this, aren't we simply setting ourselves up for further extortion whenever doctors want to make more money or get special treatment?
All this simply re-enforces my belief that it's time we had socialized medicine.
Philip Greene
Dayton, OH
I'm against the cuts. I'm for universal health care (the "right to life"). Get rid of the health insurance companies, take the profit out of health care. To pay doctors for "results" has dangers -- like with the educaton system. Doctors could choose patients where the results will come more easily while the patients with confusing, more difficult symptoms will by 'shunned' by doctors.
I'm only hearing about cuts to solve the deficit problems. What about taxing capital gains at the same rate as regular income? As Warren Buffet famously said, it's not fair that his secretary pays a higher tax rate on her income than he does. Many other developed democracies around the world tax this sort of income as regular income. Why don't we? It's not fair and it would make a big difference in our deficit problems.
two comments: the first addresses the medical contribution to the deficit problem. were we to place healthcare providers on salary instead of fee for service, much of this particular difficulty facing us now could be averted.
this second comment addresses the larger deficit issue. ilt's astonishing that increasing taxes is not on the table. if you go to wikipedia and look up US income tax, you'll find just below the middle of the article a table that shows the rates of taxes for the highest and lowest tax brackets since the income tax was instated in 1913. that table shows that, whenever the country was saddled with great debt - or with a debt-inducing activity such as war (and we're in TWO as we speak) - the tax rate on the upper 10% of income bracket has been as much as 92%, and that was in 1952!
with all the justifiable anger at all these obscenely wealthy financiers and oil magnates and so on getting away with virtually NO contribution to our national coffers, you would think a push for such a high tax on the excessively wealthy would be quite welcome by the voting populace.
but of course, this assumes our votes are more valued than the campaign contributions, and employment guarantees after our leaders leave office. what was i thinking? except that this tax plan has worked so very well in the past to lift our country out of debt.
jacqui, could not agree more. and i'm a healthcare provider.
see my comment....
Funny how social security and medicare seem to be lumped together all the time when they are two entirely different types of programs. Medicare is always in deficit while social security is sound and has accumulated a very large surplus (maybe 2.5 trillion in securities). Social security is a true government program that does not rely on the private sector to function while medicare is wholly dependent on the largess of the medical delivery system. Two points:
1. when will we finally come to terms with the fact that a for-profit system is going to function strictly for maximum profit and will always be gamed to increase costs (profit and salaries).
2. Back off of social security and stop lumping it in with the completely dysfunctional medical profit industry. Social security is sound and has plenty of funds but conservatives want to kill it by using the debt argument. In reality, they want to default on valid securities held in my name because of reckless management of government particularly by republican. talk about a transfer of wealth!
The current discussion ignores the fact that Medicare users are precisely those patients who may have more health problems than the population in general -- people over age 65 and disabled. This fragmented health care financing results in higher costs over all and puts Medicare in the bad position of always being the target of cuts. The larger perspective envisions one risk pool for caring for the whole population, so let's extend Medicare to the under age 65 population and pay physicians the same no matter the age of the patient. Let's also take into account many improved treatments, individually targeted, that are improving health and increasing quality of life. Ultimately, we may decide that SOME health care cost increases are worth the investment of resources and consciously decide as a society what the target expenditures are for health care as a part of the total economy.
degrene, i agree, and i'm a healthcare provider.
in my profession, we are now being encouraged by our professional organization (which interestingly holds the purse strings for our malpractice insurance) to refuse to take "high risk" cases. and in my profession, our cases are almost by definition "high risk."
had we even leaned in the general direction of discussing these issues in this way when i was in my grad school ethics class, we'd have been kicked out of the program.
let's face it, we're confronting the consequences of the "greed is good" zeitgeist of Reagan's 80s. making decisions solely on the bottom line will get you nowhere else, on the bottom. it's created scum of us all.
"Right to life" is a truthful name for providing health care for all. My 24 year old son recently died because he could not find an infectious disease specialist who would treat his MRSA because he did not accept medicaid patients. My son could not qualify for health insurance and had to maintain his qualification for medicaid by keeping his income at or below poverty level because he was born with a pre-existing condition, a birth defect, spina bifida.
My 91 years old grandfather lives in Delray Beach, Florida is in very good shape, still drives. Last fall he was having some digestive and stomach problems. He goes to his regular Dr. for this appointment he determines that my 91 year old grandfather must do a colonoscopy AND endoscopy which you have to have anesthetic for. At 91 years old anesthesia can be very dangerous. Of course they find nothing. My mom’s friend who is a nurse asks if the doctor did a H. pylori bacteria test which is a basic test that any good Dr. would run on someone who is of that age and is having a digestive problem because it’s very common. When my grandfather asks his Dr. about it he says “oh I guess we could test for that”. He then has my grandfather make another appointment to come back so he can read him his results, it was positive. He prescribes antibiotics which will clear this problem that’s now been going on for 3 months. He schedules him for another endoscopy to make sure there is no damage from this common bacteria because it could possibly cause ulcers. Well they didn’t find any ulcers from the first one so there shouldn’t be any now. My mom convinced him that he did not need to go back for the 2nd endoscopy. He hasn’t had a problem since. My mom is thinking there is going to be no medicare left for her. We explained that he does not need to make appointments to have his results given to him, our doctors call us on the phone or send them in the mail and send prescriptions to the pharmacy instead of us making appointments to spend a co-pay. It is absolutely ridiculous how some Drs seem to take advantage of the medicare system and of their patients.
My 91 years old grandfather lives in Delray Beach, Florida is in very good shape, still drives. Last fall he was having some digestive and stomach problems. He goes to his regular Dr. for this appointment he determines that my 91 year old grandfather must do a colonoscopy AND endoscopy which you have to have anesthetic for. At 91 years old anesthesia can be very dangerous. Of course they find nothing. My mom’s friend who is a nurse asks if the doctor did a H. pylori bacteria test which is a basic test that any good Dr. would run on someone who is of that age and is having a digestive problem because it’s very common. When my grandfather asks his Dr. about it he says “oh I guess we could test for that”. He then has my grandfather make another appointment to come back so he can read him his results, it was positive. He prescribes antibiotics which will clear this problem that’s now been going on for 3 months. He schedules him for another endoscopy to make sure there is no damage from this common bacteria because it could possibly cause ulcers. Well they didn’t find any ulcers from the first one so there shouldn’t be any now. My mom convinced him that he did not need to go back for the 2nd endoscopy. He hasn’t had a problem since. My mom is thinking there is going to be no medicare left for her. We explained that he does not need to make appointments to have his results given to him, our doctors call us on the phone or send them in the mail and send prescriptions to the pharmacy instead of us making appointments to spend a co-pay. It is absolutely ridiculous how some Drs seem to take advantage of the medicare system and of their patients.
You obviously are not in the medical field nor a business owner. You have no idea of the expenses or stress or the life that physicians give up for their patients. Why is it that people are so stuck on the fact that doctors get paid for what they do. How would you feel if you didn't get paid at your job. I have been in this field for over 25 years and have my own business and I can tell you 95 percent of docs are hard working people who care for their patients. They put up with constant regulations, stress from frivolous law suits and people like you who expect them to work for free. You also have obviously never lived in a foreign country where you either can't get the services needed or you have to wait for months for care. Well I lost a good friend because of socialized medicine. What the public does not understand is that insurance contracts are based on Medicare so if this cut of 21 perct goes thru their whole income is cut by this much .. How about we cut your paycheck by that much...wouldn't like it would you.
You obviously are not in the medical field nor a business owner. You have no idea of the expenses or stress or the life that physicians give up for their patients. Why is it that people are so stuck on the fact that doctors get paid for what they do. How would you feel if you didn't get paid at your job. I have been in this field for over 25 years and have my own business and I can tell you 95 percent of docs are hard working people who care for their patients. They put up with constant regulations, stress from frivolous law suits and people like you who expect them to work for free. You also have obviously never lived in a foreign country where you either can't get the services needed or you have to wait for months for care. Well I lost a good friend because of socialized medicine. What the public does not understand is that insurance contracts are based on Medicare so if this cut of 21 perct goes thru their whole income is cut by this much .. How about we cut your paycheck by that much...wouldn't like it would you.
First of all I doubt your grandfather had anesthesia...they give twilight to pts who have endoscopies,which is very safe.
Second endoscopies save hundreds of thousands of lives every year..thank God nothing was found.
Third imagine all of the patients your doctor has, the how many times they call wanting him to call in and give free advice, prescriptions, referrals, etc. Etc. Etc. Then when they come in and want to take up his time with questions but, don't want to pay their copayment because he/she had positive results..thank God...but they take 30min of his time and the insurance company pays him $10.00.
Fourth If he had not done the test and your grandfather had cancer you would have called him incompetent at best and sued him at worst.
Shame on you for not feeling your doctor should be paid for his services he has a family to feed too.
Oh, poor you! Who was it that put a gun to your head and MADE you become a doctor? You did it because of one of two things: 1) you had a deep desire to help people and see them healthy, or 2) you wanted a large salary and lifestyle. Either way you choose the job you have and along with it comes sacrifices and responsibilities. If it's too much for you, you have an equal opportunity to choose another way of living, so stop crying about how hard you work and how we should pity you.
Keep in mind, there are plenty of people who work hard -- lifting literally tons of weight during their normal workday, sweating in hot workplaces of 100 degrees or more, working long hours in adverse conditions, and for wages that you wouldn't even consider. No one owes you a living; but I consider it an indisputable, non-negotiable RIGHT of everyone to have access to the same quality of health care that is enjoyed by the richest, most powerful people in the country.
You still don't know what your talking about..I'm not a physician and wouldn't want their job. Doctors took an oath to do no harm....not work for free.
And there is not one single person in the USA who cannot get care. Thebproblem is they don't want to go to free clinics because of the fact that they have to wait so long to be seen, may not be able to get the services they think they need, can't get an appointment for months....hum sounds like socialized medicine....be careful what you wish for you might get it.
I happen to be a woman who left her home state with 2little children when her husband lost his job. We drove to Texas in a rusted out pea green impala with no job ..no money..didn't take one dime in hand outs..never expected a thing for free....worked hard and long , taught myself my field and now own my own business employing 15 people. I didn't have insurance when we were working our way up, but paid our bills,saved our money. I have noooo sympathy for people who always have their hand out. I can bet they have cell phones, 50 inch Tv's, nice dresses.etc. Take from those who work hard and give to the useless..... That's precisely why small businesses are struggling and the unemployment rate is rising...don't blame the doctors.
We talk about all these cuts that are necessary but we are in a major recession and spending is necessary. It troubles me that we can cut funding to these services, including unemployment insurance and basically leave people out in the cold with no place to go, no food clothing and shelter and most of the nation says oh well, it's not me, I have a job.
People are dying, whether from suicide or health issues that could be treated. We don't talk enough about what this is doing to a family, we don't interview the family to see the devastation that it has caused. Why don't we, do we not want to see with our own eyes for horror that we as nation have created and are allowing to continue?
The Bush tax cuts added Trillions to the deficit. Why not get rid of them now and then rescind the Soc. Sec. cap so everyone pays the same, 71/2% of their income. If there had been no cap would S.S. be in trouble now? It's nice to freeze the little guy's income while the rich and the filthy rich whistle nervously as they hide and play golf.
The problem is the rich don't have paychecks so therefore don't pay sstax. We need to have only a vat tax...take all other taxes out of the picture.. Balance the budget, don't spend if you don't have it, that way..if you are rich you consume more and pay more. This would be more balanced. The theory of spending more to increase growth is errored because the bill allways comes due. It amazes me that people think it is ok to borrow money from China. We have people in office spending millions on projects like airports, boarder crossings in nowhere that are not only unnecessary but are stealing peoples land while they are stealing our money.
First, Medicare is a program for Senior Citizens- most of whom PAID into the system while they were working and almost EVERY Senior in the United States is on Medicare. Medicaid is a public health insurance system predominantly for low-income children and the disabled - paid for by ALL tax payers and is NOT a handout. I don't know about you, but I like the idea of children and disabled Americans getting proper health care. If you didn't use the public healthcare system when you should have that is your fault. The thought that you allowed your children to go uninsured because of your pride is sad.
Lastly, I agree that the cost of medicine is too high. I have plenty of family and friends that are doctors. They do have families to take care of too- but all the docs I know serve predominantly low to moderate income and Seniors. They also work for or run organizations that recieve pubic tax incentives - like non profit status...and they care deeply about the community. I think it is a sad state of affairs that docs are turning Medicare patients away.
I am well aware of the difference between the systems..this is what my business is. Do you not think that it's a shame that our government is spending our parents money. Now they want to use our parents money to pay for their pork programs. I don't know about your parents but mine were hard working Military. My father was in Vietnam and always had three jobs so my mom could stay home with us kids. They don't deserve the treatment our government is giving them.
In 25 years of the medical business field not one doctor I know has had a subsidized or charitable organization. They work hard and employee people.
Oh, and my kids.. They had great medical care and never suffered because I had to have a new car or tv. Also, they are productive hard working, happy young adults now with families of there own. Guess hard work didn't hurt them
Part of the discussion addressed costs of health care in America re currently 17% of GDP and expected to keep rising. Amazingly, and in typical American naivete and simple mindedness , not one of of participants, be they panel members or the host or people who called in, thought of or wondered about how it works in other countries ( Canada, U.K.,Germany, France, Norway, Sweden, Japan, Taiwan, Switzerland, etc ) where costs are typically 5 to 7 % of GDP with better outcomes and they cover everyone ? Refer ' Frontline...getting sick in america ' , and T.R. Reads book ' The Healing of america '. One big reason : insurance companies operate as non-profits.
Every physician I know is a millionaire. Physicians should be required to be a part of cost reduction now. If not a 21% cut, a 5% cut or at least a freeze would be fair. Given the high levels of fraud and abuse by providers in the Medicare system, a cap on the amount paid any one provider would also be wise along with tougher law enforcement.
It was disappointing to not hear one word of the massive amount of fraud in the Medicare system. The government estimates that fraud accounts for nearly 60 billion dollars a year in waste, but does nothing to control it. Also, Bill Clinton had a surplus due to less spending by Congress. George Bush just let the Congress spend whatever they wanted and endorsed that drug plan. It's time for serious cutbacks across the board in every government agency and programs.
Rfg2 listens to the news too much.. I know over 100 physicians and not one is a millionaire. And not one commits Medicare fraud. Where did you get your statistics...msnbc news channel. As a matter of fact they under code for there services more often then not and do not collect 75 percent of there fees due to
Insurance company cuts, patients not paying their bills, and insurance companies denying their claims with games. Also, I don't think the other person has ever been to a foreign country to get health care..why is it people come to the USA for care instead of their own if it's so good?
Who is John Galt?
Who is John Galt?