MINNEAPOLIS, October 15, 2009 – The MMA and the AMA are calling for physicians to rally around a Senate bill that would repeal Medicare’s flawed physician payment formula and erase backlogged physician payment cuts.

On Tuesday, Sen. Debbie Stabenow, D-Mich., introduced the Medicare Physicians Fairness Act of 2009, (S. 1776) as a first step toward fixing Medicare’s broken payment system. The bill would repeal the sustainable growth rate (SGR) formula and stop a 21 percent payment cut slated for January.

The bill does not address the need for future increases in physician payment rates, but Senate leaders have said updates would be included in the final health care reform package. 

“This bill represents the best chance we’ve seen in nearly ten years to get rid of the SGR formula, and if Congress is serious about Medicare payment reform, then this is a crucial first step,” said Dave Renner, the MMA’s director of state and federal legislation.

The MMA sent out an Action Alert! Thursday calling for physicians to write or call Minnesota’s senators to tell them to vote in favor of the bill.

Senate leaders told the AMA during a meeting this week that their goal is to repeal the SGR formula in this bill in order to lay the foundation for a new Medicare physician payment system as part of comprehensive health care reform.

The reform bill that recently passed the Senate Finance Committee includes a 0.5 percent increase in Medicare’s physician reimbursement rate.

Both Democratic Senate leaders and President Barack Obama are supporting the bill, according to the AMA.

However, it will not be easy to pass. Supporters will need 60 votes, on several procedural steps, to get the job done.

The Senate is likely to take up the bill Monday and will need 60 votes to start formal consideration of the bill. A vote on final passage is expected to occur late next week.

Because of the short timeline, the MMA is encouraging physicians to contact senators immediately. The AMA is strongly encouraging physicians to call Senators Al Franken and Amy Klobuchar by using the AMA’s hotline at 800/833-6354.

Click here to use the MMA’s email system and to see suggested talking points.