Under the threat of the Centers for Medicare & Medicare Services’ proposed 9.9 percent reduction in Medicare Part B physician reimbursements, more than 41 percent of respondents said they may have to limit the number of Medicare patients they see. More than 19 percent of respondents to MGMA’s questionnaire said they would be forced to stop accepting new Medicare patients.
Beyond restricting access, medical groups also said:
-- 57 percent would have to reduce staff healthcare benefits coverage to remain financially viable
-- 44 percent would cut administrative staffing levels
-- 33 percent would cut clinical staffing levels
-- 9 percent would cut the number of physicians in their practice
“Unfortunately, it’s the patients and the employees who staff these facilities that bear the burden of the financial belt-tightening in group practice,” said William Jessee, MD, FACMPE, president and CEO of MGMA. “With physician practices serving as patients’ longest and strongest tie to the medical community, we believe it’s imperative that Congress recognize the damage that’s being done.”
Of additional concern to MGMA, the poll indicated that nearly 63 percent of respondents said private insurance companies with which they had contracts made changes to their 2006 payment rates based on the Medicare fee schedule. Of those affected practices:
-- 51 percent experienced up to a 5 percent reduction in reimbursements
-- 22 percent experienced up to a 10 percent reduction in reimbursements; and
-- Nearly 9 percent experienced up to a 25 percent reduction in reimbursements
“Beyond the impact on practices with higher Medicare-beneficiary patient populations is the domino effect these payment cuts will have when private payers follow suit and reduce their payments across the board,” continued Jessee. “Even practices that have already restricted their Medicare patient volume will feel the pinch.”
MGMA conducted its Medicare access questionnaire in July, six months after the government’s second consecutive annual freeze in Medicare reimbursement and six months before the pending 9.9 percent reduction. MGMA collected responses from more than 613 members, representing more than 13,686 practicing physicians. MGMA asked respondents how they would manage Medicare patients if the program reduces reimbursement levels by an additional 9.9 percent, as proposed in the 2008 Medicare physician fee scheduled slated to take effect in January. The average respondent group comprised 23 physicians.
Source: MGMA