MINNEAPOLIS, March 26, 2008—The Minnesota Medical Association has joined with numerous other state and national health care organizations to support the "Save Medicare Act of 2008," which was introduced by Sen. Debbie Stabenow, D-Mich.

The letter signed by MMA leaders described S. 2785 as "a critical step in preserving seniors’ access to care under the Medicare program and providing respite from annual efforts to block cuts in payments to physicians and other health care professionals. "

The bill provides an 18-month period of relief to give Congress time to address the serious problems of the existing system. The goal at the end of this period of relief is a new system of reimbursement that will better serve the needs of seniors and physicians.

The MMA is also encouraging physicians to write Senators Amy Klobuchar and Norm Coleman urging them to cosponsor S. 2785.

Key provisions of S. 2785

• Replaces cuts totaling over 15 percent with positive Medicare physician payment updates from July 1, 2008 through December 31, 2009:
  • Extends the 0.5 percent update through December 31, 2008 (averting the 10.6 percent cut scheduled to occur on July 1, 2008).
  • Provides physicians with a 1.8 percent update for 2009, which corresponds to the final 2008 Medicare Economic Index (MEI), which is the government’s measure of annual medical practice cost increases.
• Payment update for remainder of 2008 and 2009 is fully funded – it does not increase the size or duration of future cuts.
• Extends certain rural provisions through 2009 (these provisions were extended in the Medicare, Medicaid, and SCHIP Extension Act of 2007 (S. 2499) and are scheduled to expire on July 1, 2008):
  • The work GPCI floor – extends the work geographic index (GPCI) floor of 1;
  • Bonus for physician scarcity areas – extends a provision that provides a 5 percent bonus payment to physicians practicing in physician shortage areas.
  • Accommodation of physicians ordered to active duty in the armed services – extends a provision that permits physicians in the armed services to engage in substitute billing arrangements for longer than 60 days when they are ordered to active duty.
• Extends the Medicare “Physician Quality Reporting Initiative” (PQRI) through 2010, with eligibility for a 1.5 percent bonus payment for participating physicians in 2009.
• A “Sense of the Senate” provision calls for quality reporting programs to provide positive incentives for voluntary participation and to be non-punitive.
• Another “Sense of the Senate” provision reflects the existence of Senate budget rules by stating that the bill should be deficit-neutral for five years and Congress should address the challenges facing Medicare in a fiscally responsible manner.  

See the letter the MMA signed on to here.