The federal government should "make broad changes" to ensure Medicare's future, the Medicare Payment Advisory Commission recommended last week.
In its annual report to Congress, MedPAC made 2009 update and policy recommendations for eight Medicare fee-for-service payment systems, including a 1.1 percent increase for doctors in 2009. The rates were approved by a MedPAC vote in January.
American Medical Association President-elect Nancy Nielsen, MD, said the rate increase is not enough. According to AMA, 60 percent of physicians will likely limit new Medicare patients and more than half will reduce their medical office staff as a result of the new rate.
"The AMA calls on Congress to replace 18 months of looming Medicare physician payment cuts, which begin this July, with funded payment updates that reflect medical practice cost increases," Nielsen said. "This sensible approach will give Congress time to work with physicians to legislate a solution to the long-term Medicare physician payment problem."
In December, Congress passed the Extension Act to defer a 10.1 percent Medicare payment cut for physicians scheduled to take effect January 1. The law replaced the scheduled cut to the 2008 Medicare physician reimbursement rate with a one-half-percent increase through June 30.
Senate Finance Chairman Max Baucus (D-Mont.), sponsor of the Extension Act, said in December that it is time for Congress to make some "bold moves" to ensure Medicare beneficiaries have access to care.