Statement of Congressman John D. Dingell, Ranking Member
Committee on Energy and Commerce

INTRODUCTION OF THE
PATIENTS' ACCESS TO PHYSICIANS ACT (PAPA)

July 27, 2006

This legislation responds to the fact that physicians are currently scheduled to receive a significant reduction in their Medicare payments over the next five to 10 years. The Medicare Trustees have projected that Medicare payments to physicians will be cut by 4.6 percent in January. And, if Congress does not act, physicians will see a cumulative cut of approximately 37 percent through 2015. Providers in Michigan alone stand to lose $8 billion over this time period if the cuts that are forecast are allowed to take effect.

My legislation would provide a temporary halt to these Medicare physician payment cuts. It would provide a positive physician update, expected to be between 2 and 3 percent, in both 2007 and 2008. The update would reflect physician practice cost inflation. This follows the advice of the Medicare Payment Advisory Commission’s recommended formula of increases in physician practice costs minus productivity adjustment.

This legislation would also protect beneficiaries from any additional premium increases that would otherwise be caused by this change in physician payments for these two years. For seniors living on fixed incomes, unexpected increases in their living expenses can impose hardship. The Part B premium already consumes 9 percent of the average Social Security check. Thus, the bill ensures that beneficiaries would not see an increase in beneficiary premiums due to Congressional action to increase physician payments.

It is critical that Congress protect the right of beneficiaries to see their doctor in Medicare. The vast majority of seniors and people with disabilities are and will remain in Medicare where they have the freedom to choose their own doctor and get the care that is right for them.

While ideally we will develop a new payment system that integrates payment and quality, we do not have enough information and data to implement such a system at this time. My legislation would provide a temporary increase for doctors while Congress continues to work toward a permanent solution.

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(Contact: Jodi Seth, 202-225-3641)