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STOP MEDICARE PHYSICIAN PAYMENT CUTS

Before adjourning for the holidays last year, Congress approved legislation blocking the 10.1% across-the-board Medicare payment cut that all physicians faced on January 1st due to the flawed Medicare Sustainable Growth Rate (SGR) formula. The new law provides a short-term 0.5% positive payment update for six months effective through June 30, 2008; on July, 1st physicians will face a cut of approximately 10.6% unless Congress again moves to block these cuts. It is unfortunate that Congress could not reach agreement on comprehensive payment reform or a strategy to provide a pathway to future repeal of the flawed Medicare Sustainable Growth Rate (SGR) formula.

Regrettably, the inability to reach agreement on how to pay for an SGR fix has resulted in Congress once again paying for a short-term positive update with deeper scheduled cuts in the future, first in July 2008 and then in January 2009. Blocking the Medicare SGR payment cuts and replacing the cuts with an 18 month positive update based on increases in physician practice costs is a top priority for AACE in 2008. AACE is also continuing to work in consultation with the American Medical Association (AMA) to achieve meaningful Medicare payment reform.

All AACE members are encouraged to contact their congressional representatives and senators and urge that they:

1. Block the 10.6% automatic across-the-board Medicare physician payment cut scheduled to take effect on July 1, 2008.
2. Provide an 18 month positive physician payment update that covers practice cost increases; and
3. Lay the groundwork for the permanent replacement of the flawed Medicare SGR formula.

AACE members are urged to go to the AACE Legislative Action Center and send an e-mail today! Please see the resources listed below to assist you in making your congressional contacts. If you have any questions or need more information, please contact Sara Milo, Director of Legislation, Governmental Affairs & AACE Chapters at smilo@aace.com.

SGR Talking Points
SGR Legislative Fact Sheet
AMA Physician Survey
Medicare Costs vs. Cuts
Medicare Payment Cuts for Physician Services by State, July 2008-December 2009
Medicare's Physician Payment Update Formula: The Facts