(reprinted with permission from the AMA)

FOR IMMEDIATE RELEASE November 28, 2001

Statement attributable to: Richard F. Corlin, MD, AMA President

"The American Medical Association strongly supports the 'Medicare Physician Payment Fairness Act of 2001,' introduced by Reps. Bilirakis and Brown, and we welcome the support of Reps. Tauzin and Dingell.

"This bipartisan congressional leadership group -- along with those who support a similar bill in the Senate -- recognize that we need the Medicare Physician Payment Fairness Act to ensure that our elderly and disabled patients will continue to receive the care they deserve and depend on.

"This legislation is urgently needed to allow Congress, in conjunction with the Medicare Payment Advisory Commission (MedPAC), to reconsider the flawed physician payment update formula that will result in a 5.4 percent Medicare payment cut in 2002.

"This is the fourth Medicare payment cut to physicians over the last ten years, and if the 5.4 percent cut becomes effective, Medicare payments to physicians will have averaged only a 1.1 percent increase per year since 1991, or 13 percent less than the increase in physician practice costs.

"Congress must act now to keep Medicare beneficiaries from suffering the same access problems that challenge Medicaid beneficiaries.

"MedPAC has stated that significant cuts in physician payments next year 'could raise concerns about the adequacy of payment and beneficiary access to care.' The gap between physician payment and physician costs has already led to news reports of access problems for Medicare beneficiaries in Atlanta, Phoenix, Albuquerque, Denver, Austin, Annapolis, Spokane, as well as California and Idaho.

"Congress must act now to keep the Medicare program strong for this generation of seniors - and the generations to come."

For more information, please call: Brenda L. Craine 202/789-7447

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