Historical Medicare Bill Passes

Thanks to Senator Grassley

On behalf of the physicians in Polk County Medical Society, your Executive Committee continued their relentless efforts on Medicare fairness for physicians and met in Washington, D. C. with the Iowa Congressional Delegation to urge the passage of the Medicare bill for fairness to Iowa doctors.

Through the hard work of PCMS doctors, IMS and AMA doctors, and a multitude of hospitals and organizations throughout the country, we now have a Medicare bill that includes prescription drug coverage for seniors and some help in closing the gap on equity for Medicare for Iowa physicians. Thanks to the Executive Committee, Legislative Committee, and PCMS members who have been to Washington to lobby on behalf of Iowa doctors and their patients. Thanks for all of your phone calls, and emails, which really did help to pass this Medicare Bill.

THANKS SENATOR GRASSLEY. Doctors owe you tremendous thanks for your relentless efforts on behalf of doctors and their patients, especially in Iowa, to pass this important bill. Key provisions in the Bill that will be signed into law by President Bush on December 8, 2003:

· Physician update: Replacing a 4.5 percent cut with a 1.5 percent increase represents a 6 percent favorable swing in the Medicare conversion factor. Additional cuts in 2005 will also be prevented.

· Prescription drug benefit: Prescription drug benefit is consistent with AMA principles and targets financial assistance to neediest patients.

· Regulatory relief provisions: Due process protections for Medicare carrier audits include deferring any financial penalties until physician appeal rights are exhausted, no penalties when a physician relies on guidance from Medicare officials, an opportunity to correct errors before repayment demands are made and limits on extrapolation or small-scale audits to generate large overpayment demands.

· Physicians in rural and underserved areas: Geographic payment disparities would be reduced with a $1 billion increase in the work component to the fee schedule; an additional $700 million in incentives to maintain and enhance the physician supply in rural and underserved areas.

· Medical savings accounts: Increased tax benefits are provided to patients of all ages that enroll in medical savings accounts (now known as Health Savings Accounts).

· Electronic prescribing: voluntary instead of mandatory.

· CPT coding: Physicians can continue to use their current coding system, preventing a move from some 7,000 codes to 170,000 used in ICD 10.