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
    photo of hands with blue veins
    8 Proven Tips on Finding Difficult Veins
    November 12, 2021
    tips for getting over the pandemic blues
    4 Proven Ways to Get Over the Pandemic Blues
    February 22, 2022
    medical industry innovations
    How is CNC Machining Transforming the Medical Industry?
    June 2, 2022
    Latest News
    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
    Chewing Matters More Than You Think: Why Proper Chewing Supports Better Health
    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
    Transformational and Disruptive Changes Are Coming to the Delivery System
    July 22, 2012
    Telemedicine and the PCP Cliff
    November 30, 2012
    Engaging Specialty Practices in the Patient Centered Medical Neighborhood
    March 24, 2013
    Latest News
    Streamlining Healthcare Operations: How Our Consultants Drive Efficiency and Overall Improvement
    June 11, 2025
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
  • 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
Last updated: December 11, 2012 8:04 am
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

What Are The Advantages Of Accelerated BSN Programs?
What Developers Need to Know About HIPAA Compliance in Wearable Tech
Physician Patient Communication
A Mashup for Doctor Patient Relationships
Obamacare Subsidies Continue, Court Rules. Now Let’s Get to Work.

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

Streamlining Healthcare Operations: How Our Consultants Drive Efficiency and Overall Improvement
Global Healthcare Policy & Law
June 11, 2025
magnesium supplements
The Wide-Ranging Benefits of Magnesium Supplements
Health
June 11, 2025
Preparing for the Next Pandemic: How Technology is Changing the Game
Technology
June 6, 2025
migraine home remedies and-devices
The Best Home Remedies for Migraines
Health Mental Health
June 5, 2025

You Might also Like

Medical Ethics

Why My Patient Left the Office

January 11, 2016

Some Further Disruptive Changes in HealthCare Delivery

September 24, 2012

Vaccines in the Pipeline and Vaccine Economics

November 18, 2011

A Challenge of Ethics on Facebook

February 29, 2012
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?