“7,900 physicians and other health professionals have opted out of Medicare since 1998.”

By Charles Fiegl, amednews staff.

“Washington — Lawmakers are considering the possibility of paying for a long-term Medicare physician payment solution by reallocating war funding that is no longer needed — an idea that has gained the support of the American Medical Association and more than 100 state and specialty medical societies.

“The drawdown of U.S. troops after a decade of fighting in Afghanistan and Iraq could free up large savings in the federal budget and present an opportunity for the federal government to get more of its finances in order. Congress temporarily has delayed or patched Medicare cuts mandated by the sustainable growth rate formula for years. Lawmakers who want to break that cycle want to eliminate the (Sustainable Growth Rate) SGR, which is set to cut physician pay by about 27% on March 1, and fully account for future program spending by doctors.

“The AMA released a Jan. 23 letter signed by the organized medicine groups calling on a congressional conference committee to stabilize Medicare pay using the overseas contingency operations funds. The special committee is negotiating a payroll tax cut and unemployment insurance extension package that also will address the upcoming SGRcut.

There is bipartisan agreement to stop the scheduled Medicare cuts permanently, said AMA President Peter W. Carmel, MD. The payment formula affects physician rates not only under Medicare but also under the Tricare program for military families.

“‘Using funds that will not be needed as the wars wind down to protect health care for men and women in uniform and our nation’s seniors is the fiscally responsible thing to do,’ Dr. Carmel said. ‘By eliminating this failed formula once and for all, Congress can stop growing the size of the problem for patients, physicians and taxpayers.’

A fifth of Connecticut doctors have stopped accepting new Medicare and Tricare patients

“Conferees from both parties have signaled some willingness to use the unspent war funding to boost physician pay. Sen. Jon Kyl (R, Ariz.) said in December 2011 that he would be open to the strategy, and Rep. Allyson Schwartz (D, Pa.) cited the opportunity during the first conference committee meeting on Jan. 24.

“’Using part of the savings achieved through the reduction of military operations in Iraq and Afghanistan offers a unique and limited-time opportunity to resolve a budgetary problem that grows more costly with each passing month,’ Schwartz said.

A Jan. 31 Congressional Budget Office report said reduced outlays for the overseas contingency operations fund — money that is not expected to be necessary given the troop drawdowns — would total $838 billion from 2013 to 2022. In his Jan. 24 State of the Union address, President Obama said that money should be used to help pay down the national debt and undertake “some nation-building” at home, although he did not mention Medicare physician pay specifically.

“Some GOP leaders in Congress had dismissed the overseas fund opportunity as a budget gimmick.” To continue reading this Amercian Medical News article, click here.