The American Academy of Family Physicians is warning its members that there may be a delay in the receipt of Medicare payments if an agreement on raising the federal government's debt ceiling is not reached by the Aug. 2 deadline.
"We feel we have an obligation to at least inform our members in case there is going to be any kind of cash flow disruption for them pertaining to Medicare," said Roland Goertz, MD, AAFP president.
The federal government has been locked in a battle over raising the debt limit and cutting the budget of the United States. The debt limit currently stands at $14.3 trillion. If Congress is unable to reach an agreement, the United States could default on its financial obligations, which could lead to catastrophe worldwide. It also means that government services, benefits and programs, such as Medicare, will take a hit.
[See also: Medicare, Medicaid, CLASS in crosshairs of 'Gang of Six' deficit plan.]
"The only thing I know is the larger messages that have been sent out as far as maintaining mandatory services, and, of course, entitlement services, at least at the beginning, are being protected, but I have a feeling that that does not and will not extend to all the pieces of those various programs that are being discussed," Goertz said.
"If we're a good steward for our members we're going to try and prepare them as best as possible for what might be (a) disruption," he said.
Some of AAFP's members have practices that are 50 percent or more Medicare or Medicaid. They would be particularly hit hard if there are payment disruptions. Goertz said if practices do face cash flow problems due to payment disruption, practices may be forced to get a line of credit from a financial institution or cut out any unnecessary expenditures for a period of time. He said he hopes that no one will have to close because of payment disruptions.
With only a handful of days until "debtgeddon," as some media outlets are referring to the Aug. 2 deadline, a resolution between opposing camps on the Hill doesn't look promising.
The House of Representatives is scheduled to vote today on a plan offered by Speaker John Boehner (R-Ohio), but there is uncertainty that Republicans have enough support to pass it.