Medicare fee freeze praised

Larry Avila

Jul. 1, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- The Bush administration's decision to freeze a scheduled 10 percent fee cut for doctors who treat Medicare patients was welcome news to Valley health care providers.

"About 50 percent of our revenues comes from various government resources," said John Gillespie, manager of public and government relations and marketing at ThedaCare, which operates Appleton Medical Center and Theda Clark Medical Center in Neenah.

Gillespie said a 10 percent cut in Medicare reimbursements would cost Theda-Care about $1.3 million annually. However, Medicare reimbursements have been declining in recent years.

"As reimbursements cut back, you may find fewer and fewer providers will be willing to have practices open to Medicare patients," he said.

Affinity Health System would have lost $2 million if the cut went through, said Dan Neufelder, system president and chief executive officer.

"Medicare pays about 30 percent of billed charges from a physician," he said. "We certainly were relieved to hear about the freeze."

The Bush administration said Monday it was freezing the cut to give Congress time to act to prevent the cuts when lawmakers return from a July 4 recess. Almost every year, Congress finds a way to block such cuts. But last week, the Senate fell just one vote short of the 60 needed to proceed to legislation that would have stopped the cut.

Physicians have been running ads hinting that as a result of the cuts, patients may find doctors less willing to treat them.

Kevin Schweers, a spokesman for the Department of Health and Human Services, said Monday the Centers for Medicare and Medicaid Services will hold doctors' Medicare claims for services delivered on or after today. Claims for services received on before Monday will be processed as usual, he said.

Congress, not willing to face millions of angry seniors at the polls in November, will almost certainly act quickly when it returns to Washington the week of July 7 to prevent the cuts in payments for some 600,000 doctors who treat Medicare patients. The cuts were scheduled because of a formula that requires fee cuts when spending exceeds established goals.

George Quinn, senior vice president with the Madison-based Wisconsin Hospital Association, welcomed the freeze but remains cautious.

"It is a breather to give Congress time to find a way to either alleviate the cut or eliminate it all together," he said. "The problem is, if they offset the cut, where else will they go?"

Newstex ID: KRTB-0155-26431921