WASHINGTON - Rep. E. Clay Shaw, Jr. (R-FL) and Rep. Benjamin Cardin (D-MD) introduced the Preserving Patient Access to Physicians Act of 2005 (H.R. 2356) to prevent devastating cuts to the rates that Medicare pays to doctors who treat seniors.

            Under current Medicare law, a formula, called the Sustainable Growth Rate (SGR), is used to keep Medicare spending for physician services in check. Unfortunately, this formula is flawed and does not accurately reflect beneficiary utilization of doctor services. As such, doctors are projected to receive cuts from Medicare while the number of patients they see increases.

            "Florida Medicare beneficiaries are in jeopardy of losing access to doctors if these Medicare cuts continue," said Rep. Shaw. "Congress has consistently provided temporary relief to doctors by increasing payments but more comprehensive reform must be done."

            "The current physician payment formula is flawed and it jeopardizes the ability of physician practices to make sound long-terms financial decisions," said Rep. Cardin. "This bill helps remedy the problems. It’s time for Congress to replace the current system with one that assures adequate and appropriate payment to Medicare providers."

             The 2005 Medicare Trustees Report estimates that the current physician payment system will cut doctors reimbursements by 26 percent over the next 6 years - beginning with an across the board 4.3 percent cut on January 1, 2006.

            The Preserving Patient Access to Physicians Act of 2005 repeals the SGR and replaces it with an annual Medicare payment update for physicians that reflects practice cost increases. H.R. 2356 would provide doctors with a payment update of no less than 2.7 percent in 2006, with the annual update beginning in 2007.

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