2008 Medicare Trustees Report Projects Cuts of 41% in Physician Payments by 2016

The Boards of Trustees for Medicare report annually to the Congress on the financial operations and actuarial status of the program. The 2008 yearly report, which includes projections for future physician reimbursement rates, was issued on March 25, 2008. In it, the Trustees predict that:

• Medicare will be insolvent by 2019
• Physician reimbursement under the current Sustainable Growth Rate (SGR) Formula will be cut
• • 10% in 2009
  • 5% each in 2010, 2011, and 2012
  • 3% in 2013
  • approximately 13% in 2014
  • at least 4% in 2015 and 2016

This is a cumulative reduction of more than 41% by 2016. In contrast, the Medicare Economic Index (MEI) is expected to increase by about 18% over the same time-frame.

Only Congress has the power to stop the cuts and change the way physician reimbursement is calculated. Please contact your legislators today and urge them to halt payment cuts and finance a positive payment update.

For additional information please contact Nevena Minor, Manager of Legislative Affairs. To download the full report, please visit the CMS website.