Berkley Warns Time is Running Out to
Stop Cuts in Medicare Payments to Nevada Doctors

(Washington, DC -- November 30, 2006) Warning that it could leave Nevada seniors without access to their doctor, Congresswoman Shelley Berkley today called for immediate action to stop a 5% cut in payments to physicians who provide healthcare services to Medicare patients. The cut would be effective January 1, 2007.

“Nearly 275,000 Nevadans are eligible for Medicare and they should not have to worry that their doctor will be forced to stop treating them because of cuts in reimbursement rates. If Congress fails to act before the end of this year, this cut will automatically go into effect and the result will be reduced access to care for Medicare beneficiaries in Las Vegas and across our nation,” said Berkley.

“At a time when physician costs are skyrocketing, we cannot expect our doctors to lose money when they treat a Medicare patient. If we don’t cover the cost of this care, our doctors will have no choice but to stop seeing those covered by Medicare or to shut their doors and go out of business. There is still time to act, but the clock is ticking and families are looking to Congress for leadership on this important healthcare issue,” Berkley said.

Berkley is renewing her call for action on the reimbursement issue as Congress prepares to enter the final days of the current congressional session. In a strongly worded letter today to Speaker of the House Hastert and Majority Leader Boehner, Berkley stresses the need to prevent any cuts to physician reimbursement rates in order to protect Medicare beneficiaries. The letter notes that while payments for physician services under Medicare are slated to be cut by 5%, fees paid by the federal program to hospitals and nursing homes will actually increase in 2007. The following is the full text of the Congresswoman’s letter to House leaders urging immediate action:

November 30, 2006

The Honorable J. Dennis Hastert
Speaker
United States House of Representatives

Dear Mr. Speaker,

          I wrote to you this past September urging Congressional action to protect Medicare beneficiaries from looming cuts. Without intervention, payment under the Medicare sustainable growth formula (SGR) for physician services and health care professionals will be cut by 5.1 percent as of January 1, 2007. The 109th Congress will soon end and I am very concerned that this serious problem has not been addressed.

          These cuts destabilize Medicare and put millions of Medicare beneficiaries—including the frail, elderly, and infirm—at risk of losing their coverage. If these cuts are not reversed before the end of this Congress, the 2007 Medicare physician rates will have fallen 20 percent below increases in physicians’ costs since 2001. At the same time that Medicare payments go down, physician practice costs are increasing. The American Medical Association estimates that these costs will increase over 20 percent by 2015. These cuts are especially glaring when compared to other medical providers who have received consistent updates that keep pace with increasing costs. Hospital and nursing home payments are slated to continue to rise by more than 3 percent annually and payments to Medicare Advantage plans are estimated to increase by 7.1 percent in 2007.

          Continued uncertainty about Medicare reimbursements or a reduction in Medicare payments discourages physicians from entering specialties that primarily treat Medicare patients. Nevada’s 273,448 Medicare beneficiaries comprised 11 percent of the state’s population in 2005. Failing to adjust the physician reimbursement schedule restricts access to quality healthcare for those who need it most.

          I urge you to please schedule floor activity to address this critical issue and avert cuts to Medicare physician payments before the end of the 109th Congress.

          Thank you.

Sincerely,

SHELLEY BERKLEY
Member of Congress

cc: The Honorable John Boehner, Majority Leader

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