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
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Reimbursements: What Inaction Will Cause
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 > Policy & Law > Reimbursements: What Inaction Will Cause
Policy & Law

Reimbursements: What Inaction Will Cause

rdowney14
rdowney14
Share
4 Min Read
SHARE

Here we are again, about ready to end another year with absolutely no progress on changing the “sustainable growth rate,” or SGR which determines how much doctors receive for seeing Medicare patients.

Here we are again, about ready to end another year with absolutely no progress on changing the “sustainable growth rate,” or SGR which determines how much doctors receive for seeing Medicare patients.

In 1997, the SGR seemed like a good idea.  Based on estimated increases in medical costs and the number of Medicare recipients, changes in law/regulations, and a 10-year average of the gross domestic product, the SGR outpaced doctors’ expenses for the first five years, so there was no change in reimbursements paid to physicians.  Then in 2002, the formula was going to trigger a 4.8% cut in Medicare payments.  The resulting outcry from doctors convinced Congress to delay the implementation of the cut, the first time.  The band-aid fix has been close to expiration at the end of each calendar year since, but Congress has devoted time during the last weeks of the sessions to prevent it.  Now, if it goes into effect in 2013, doctors’ will get about 27% less in reimbursements from Medicare because the SGR cut for a given year adds to the rollover amount.

In 2011, when Congress passed the last delaying action, lawmakers said it would give them an entire year to retool the Medicare law.  Despite warnings of what might happen this past summer, that year has come and just about gone without any action on Capitol Hill.  And now that the fiscal cliff is almost upon us, there seems to be little interest in Congress or at the White House to stop what the SGR will do automatically January First.

More Read

medical malpractice
What Are the Consequences of Medical Malpractice?
Biggest Challenges with Managing a Dental Practice
Curing Medicare: A Book Review
Good Flavors and Obesity
Job Seekers with Disabilities Should at Health Insurance Benefits

Unless you are a physician who sees Medicare patients, you have no idea what this will do to healthcare.  Avik Roy, a contributing writer for Forbes Magazine, tells the story about how it will impact Dr. Paul Wertsch, a primary care doctor in Madison, Wisconsin, in his August article, titled “How Obamacare’s $716 Billion in Cuts Will Drive Doctors Out of Medicare.”  Wertsch billed Medicare $217 for a visit by a Medicare patient with a sinus infection whose appointment ran late because of the patient needing the extra time.  Medicare stiffed him and sent only $54 – a fourth of the bill.  Ironically, a younger patient with the same problem presented at Wertsch’s clinic the same day.  This visit required half the time and Wertsch charged the same $217.  The second patient was covered by private insurance which paid the clinic $108 – twice the Medicare reimbursement amount.  Wertsch said he was losing money, so in 2011 his clinic stopped accepting new Medicare patients.

The American Medical Association threw its support behind Obamacare because the White House and Congressional Democrats promised that the law would include a permanent reimbursement fix.  How’s that working out?  Instead of changing the SGR, the Affordable Care Act adds to it by reducing fees even more to health care providers by $415 billion over the next ten years.

TAGGED:SGR
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5KFollowersLike
4.5KFollowersFollow
2.8KFollowersPin
136KSubscribersSubscribe

Latest News

care settings
The States Leading on Nurse Practice Authority and Why It Matters for Your Career
Career Nursing
April 14, 2026
brain food matters
Brain Food Matters: How Nutrition Shapes Early Development
Health Infographics
April 14, 2026
understanding the teens burnout
Understanding Teen Burnout And Its Lasting Effects
Health Infographics
April 14, 2026
hearing loss issue
How Technology Supports Children With Hearing Loss
Infographics Technology
April 14, 2026

You Might also Like

Image
Global HealthcareHospital Administration

Covering the Needs of Patients in Nizhny Novgorod

December 17, 2013
Image
Public HealthWellness

How to Beat Carpal Tunnel Syndrome

January 24, 2013
Image
Public Health

How to Find the Right Surgeon: Advice For Boomers

May 2, 2013

Priority-Setting at WHO

November 4, 2011
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?