September 11, 2006

HEADLINE

Time is Running Out on Medicare Physician Payment Fix - ATS Urges Immediate Congressional Action

Last week, Congress returned to work with a long list of important legislative issues and limited time to address the list.  The top priority for the physician community is for Congress to pass legislation averting the 5 percent cut in Medicare physician reimbursement starting January 1, 2007.

The anticipated cuts are a result of a flawed Medicare payment formula, which ties Medicare physician payments to growth in the Gross Domestic Product and unrealistic spending targets.  Because the formula was crafted by Congress, and not by federal rule making, it requires an act of Congress to stop the Medicare physician payments cuts.  Unless Congress takes action to prevent the cuts in Medicare physician reimbursement, physicians will see a 5 percent cut in Medicare payments starting January 1, 2007, with anticipated cuts of nearly 40 percent over the next 9 years. 

Congress is acutely aware of the problem and the need for Congressional action.  Eighty members of the Senate and over 200 members of the House have signed separate letters to Congressional leadership urging immediate action to stop the Medicare cuts.  However, swift Congressional action is severely hindered by the few legislative days remaining, the several billion dollar price tag of preventing the cuts, partisan positioning along with the upcoming Congressional elections in November.

ATS President, John E. Heffner MD, recently sent a letter Congress urging Congressional action before the November elections.  In his letter, Dr. Heffner asks Congress to, “Show the political will and take decisive legislative action before the October recess to prevent these draconian Medicare cuts in 2007.”

CLEAN AIR

ATS Comments on EPA Ozone Standard

In August, ATS Environmental Health Policy Committee member Kent E. Pinkerton, PhD spoke before the EPA Clean Air Scientific Advisory Committee (CASAC) and presented the ATS views on the need for stricter EPA standards on ozone exposure.   CASAC – an expert panel convened by EPA to provide technical advice on Clean Air standards – held a hearing to collect public input on the EPA standard for ozone.  EPA is currently in the process of reviewing the current standard to see if it adequately protects the public health.

In his comments, Dr. Pinkerton stated the current standard does not protect the public health and outlined the growing body of scientific evidence that shows adverse health effects at exposure levels below the current EPA standard.  Dr. Pinkerton noted the current form of the standard allows exposures above the current level to be considered as conforming with the EPA standard.  He also noted that the EPA scientific review does not provide adequate consideration of the adverse health effects of ozone on inner city children.  Based on the weight of the available evidence, Dr. Pinkerton urged EPA to issue a stricter standard for ozone exposure.

By court order, EPA will issue a proposed rule in March 2007 that will either confirm to the existing standard or propose a new standard for ozone exposure.    

PHYSICIAN PRACTICE

CMS Administrator Resigns

On September 5^th, the Centers for Medicare and Medicaid Services Administrator Mark C. McClellan announced his resignation effective in October.  Dr. McClellan held the top post at Medicare during the addition of the Medicare Part D drug benefit - the largest expansion of the programs since its inception in 1965. 

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