Letters to the Editor

Everyone Suffers When our Nation's Healthcare Budget is Slashed

A serious blow has been dealt to our healthcare system, and Congress must act now to correct a problem that has major implications for the practice of medicine.

On January 1, 2002, a 5.4 percent reduction in Medicare reimbursements for physicians took effect. This decrease will force physicians to find ways to save money, whether by slashing practice expenses, or by limiting Medicare patients.

Florida ranks second in the nation in the number of patients covered by Medicare. With 18.6 percent of our state population receiving benefits, Florida exceeds the national average of Medicare patients by 5.8 percent. At a time of increased patient demand, such a dramatic decrease in Medicare reimbursement hurts physician practices and threatens the quality of health care in our state.

The current Medicare fee schedule ties the annual update for health care services to the annual change in the Gross Domestic Product. The problem with this formula is that it punishes physicians for economic downturns that are beyond their control. A new formula must be established, one that takes into consideration the increases in the aging population and in the costs of delivering care.

Florida physicians are in an extreme situation, with projections indicating that they could stand to lose more than $206 million, which makes our state the second highest in terms of physician losses. On average, our physicians will each lose $6,260, which is the highest per physician loss in the country.

Almost 60 percent of Florida's general medicine doctors are over the age of 50, and nearly 40 percent are over the age of 60. The financial pressure created by the fee schedule reduction increases the possibility of physician retirement. Future doctors may decide not to pursue careers in internal medicine or geriatric medicine, as these fields are more severely affected by the fee schedule cut. The Medicare reimbursement pays staff salaries, rent and funds new equipment. Doctors may reduce office hours, limiting the number of appointments available in a day in efforts to save money. Advancements in medical technology may be passed up because physicians can no longer afford the training or the equipment.

Medicare faces a dramatic increase in beneficiaries due to the aging of the baby boom generation. By 2030, projections estimate that 68 million Americans will depend on Medicare. In order to prevent its collapse, Medicare must be sufficiently funded.

Legislation to correct the reduction in the fee schedule garnered support from both Republican and Democratic leaders in 2001, but no action was seen due to the attacks on September 11. Congressional action needs to be taken soon, before irreversible damage is done.

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