By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    UV damage to eyes
    Warning Signs of Long-Term UV Damage to Your Eyes
    December 9, 2021
    degree for healthcare job
    The Ultimate Healthcare Recruiting and Staffing Guidebook
    March 21, 2022
    medicare part d benefits
    Everything that You Need to Know About Medicare Part D
    August 15, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    health navigators
    What Is a “Navigator”?
    July 17, 2013
    “Stunning Progress” but OOPs! in Afghanistan
    December 23, 2011
    physicians and medicare payments
    Physician Payments: The Not-So-Secret Secret
    August 9, 2013
    Latest News
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Addressing Medicare Cuts
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Addressing Medicare Cuts
FinanceHealth ReformPolicy & LawPublic Health

Addressing Medicare Cuts

Abby Norman
Last updated: April 17, 2015 8:00 am
Abby Norman
Share
6 Min Read
SHARE

Yesterday, the house made a fascinating bipartisan decision to repeal the current Medicare payment model and implement what they term the “doc fix” for reimbursing physicians for their Medicare/Medicaid patients. While it sounds promising, the problems to be solved with the reimbursement process are far more complex than a relatively simple patch could possible rectify.

Contents
Will They, Won’t They?The Doc FixACA Saw Brief Rise in Reimbursement in 2013 – 2014Who Are These Patients?Doctors Aren’t Taking On More Medicaid/Medicare PatientsLong Term OutlookBalancing Acts: Medicare Cuts

Yesterday, the house made a fascinating bipartisan decision to repeal the current Medicare payment model and implement what they term the “doc fix” for reimbursing physicians for their Medicare/Medicaid patients. While it sounds promising, the problems to be solved with the reimbursement process are far more complex than a relatively simple patch could possible rectify.

Will They, Won’t They?

Medicare cuts have been crying wolf for almost a decade now; each year the cuts are proposed and then postponed, with the deficits continuing to pile up, meaning the financial impact of any intended “fix” would be astronomical.

medicare cuts

More Read

FDA Warning Letter Highlights Disconnect Between Regulator and Biotech Industry
Medical Educators Need to Take Charge and Help Deflate Medical Bills
Meeting the Deductible: Cancer Drugs, Insurance and a Happy Ending
Proposal: Abolish Medical Practice Statutes
Time to Talk About Constipation

For 2015, however, the time may have finally arrived for the cuts to Medicare to fully take hold; the problem is, with so many doctors having received the threat for years now, a good majority of them are refusing Medicare/Medicaid patients at all as a matter of survival. It’s too fiscally risky to treat patients you aren’t likely to be paid for; or, in the case of Medicaid (which is impacted by Medicare reductions and cuts, since that’s where the money originates) receive a mere fraction of the cost for caring for patients with complex and often compounding health conditions.

The Doc Fix

Over the last few years the average reimbursement to physicians from Medicare for treating patients was only about 80% (Medicaid is even less; more like 56%) to begin with; when you consider that proposed cuts and reductions are running anywhere from 21-24%, that’s half of the current reimbursement amount being lost (which, to begin with, was only half the cost of actually treating the patients).

ACA Saw Brief Rise in Reimbursement in 2013 – 2014

The Affordable Care Act provided a brief rise in these reimbursement percentages for 2013 and 2014, but this year it’s not in the cards. It was no doubt in the cards, however, for the brief increase in reimbursement to expire just as proposed plans to make cuts were shuffled in.

Who Are These Patients?

When you look at the demographic of patients served by Medicare and Medicaid, you’ll see a lot of patients with not just complex (and often chronic diseases) but also some of the oldest and poorest patients in the country. These patients are, perhaps, those who need to utilize healthcare services the most, and yet due to the fiscal responsibility they carry for providers, they are also the ones who will be the most negatively impacted by provider reimbursement cuts.

Doctors Aren’t Taking On More Medicaid/Medicare Patients

If providers are given less and less in reimbursement for treating these patients, from a financial perspective it makes sense that they would be hesitant to taking on more of these costly patients. From a medical and, perhaps, a humanitarian perspective, it’s frustrating for doctors to have to choose between treating patients who may well need to utilize healthcare services more than other patients, but who are simultaneously draining the small practices and hospitals that are tasked with treating them.

Long Term Outlook

The “doc fix” — the legislation from 2012 that allowed temporary increases in reimbursement over the next couple of years — is not likely to repeat itself and extend (or further put-off) the cuts that are to come this year. While in the short term it was helpful for providers to not see those large Medicare cuts in compensation, the deficit continued to increase and now, the proposed cuts aren’t just about saving money, they’re about making up for the all the money that was paid to providers during those two years of raised reimbursements.

Balancing Acts: Medicare Cuts

It’s a precarious balancing act, and one that is likely to continue to divide the republican and democratic parties as we chug along toward the next election year.

And while we’re nearly at the end of the first quarter of the year, doctors are still holding out hope that there might be another delay in these cuts. If not, it’s going to be a fiscally tight year, and for smaller hospitals, potentially catastrophic.

TAGGED:Medicare
Share This Article
Facebook Copy Link Print
Share
By Abby Norman
My name is Abby Norman and I am a healthcare blogger. With over 10 years of experience in the medical field, I have developed a passion for helping others understand the complexities of healthcare.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025
How Therapy Can Improve Your Mental Health and Daily Life
How Therapy Can Improve Your Mental Health and Daily Life
Mental Health
June 18, 2025
healthcare facilities
Preventing Contamination In Healthcare Facilities Starts With Hygiene
Global Healthcare Infographics
June 15, 2025

You Might also Like

Health care

How Nurses Can Prevent Infection From Spreading in a Hospital

June 11, 2018
physician health
BusinessHospital AdministrationMedical EthicsPolicy & Law

Have Physicians Lost Their MoJo?

April 25, 2013

Making Patient Experience a Priority – Infographic

March 21, 2012

CMS Proposed Payment Changes for Outpatient Procedures

August 21, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?