Medicare Super Committee Action Requested

November 7, 2011

Dear Physician Colleague:

We are practicing in an unprecedented time.   While physicians are experiencing some of the most exciting advances in clinical medicine that can cure disease and extend our patient’s lives, we are also living in a time of great economic turmoil.  The economic downturn is forcing all Americans to cut back. The financially-strapped states and federal government are cutting health care programs, such as Medicare and Medicaid.  Congress has formed a Super Committee on Deficit Reduction to develop an unprecedented $1.5 trillion in government spending cuts.  Many policymakers argue that we can no longer afford entitlement programs, such as Medicare and Medicaid.  Others believe we have diverted precious resources to (fighting expensive wars?) and other issues and that we need to reprioritize our nation’s health care needs.  As California physicians, we must advocate for our patients to ensure that we have the clinical and financial resources to continue to provide the best care in the world.    

To that end, I am writing to urge you to join the California Medical Association (CMA) in our advocacy to repeal the flawed Medicare Sustainable Growth Rate (SGR) payment formula that once again threatens to cut Medicare physician payment by 27% on January 1, 2011.  As you know, these cuts negatively impact physicians’ private health plan rates as well.  Therefore, we are urging the Super Committee to eliminate the SGR in the Super Committee legislation once and for all.  It costs $300 billion to repeal the SGR which makes the Super Committee package the only viable legislative vehicle to accomplish our goal.  If these cuts are not stopped, access to care for California’s seniors will be seriously threatened.  That’s why we need every physician in California to get involved in the CMA Super Committee Campaign and help stop these cuts.  Please call, write and meet with your Member of Congress today. The talking points and contact information is available on the CMA website at www……

We are also urging the Super Committee and Congress to restore California’s woefully underfunded Medi-Cal program.  As you may be aware, the Obama Administration just approved Governor Brown’s 10% Medi-Cal payment cut to physicians providing care to pregnant women, the disabled and seniors.  The CMA plans to sue the federal government for this breach of responsibility to these vulnerable patients.  And you can be sure that we will be working on all fronts to restore these cuts and increase Medi-Cal reimbursement rates to improve access to care.  

However, given the magnitude of the cuts being contemplated on the federal level, every American is being asked to sacrifice.  That means that physicians could face a payment cut as well.  Every Member of Congress, including the leadership, and President Obama, have pledged to fix the SGR formula and stop the nearly 30% payment cut.  They fully understand that physicians and seniors cannot sustain a 30% cut.  However, a smaller cut may be forced upon us.  If the Super Committee process fails, a government-wide across-the-board cut will trigger a 2% Medicare physician payment cut.  Medicaid is exempt from these across-the-board cuts.    But CMA will be fighting at every step to stop these cuts.  And we will be more successful if every physician’s voice is heard.    

CMA appreciates Congress’ efforts to reduce the deficit and restore our fragile economy for future generations.   California physicians have done their part by making tremendous sacrifices to care for patients in the face of diminishing resources.  Therefore, we are urging Congress and the State to resist arbitrary Medicare and Medi-Cal cuts that reduce access to doctors and drive up costs for ER visits and hospitalizations that could have been prevented.  CMA is also urging Congress to allow seniors to privately contract with physicians under the Medicare program – a budget neutral option.  And we are working to develop alternative payment and health care delivery models that reign-in unnecessary spending while maintaining vital access to care.  CMA is leading the way to the future with proactive solutions.    

RIGHT NOW, WE NEED YOUR HELP!  IT’S NOW OR NEVER!  PLEASE CALL, WRITE AND MEET WITH YOUR MEMBER OF CONGRESS TODAY!  WE NEED THE CONGRESSIONAL SUPER COMMITTEE TO REPEAL THE MEDICARE SGR AND STOP THE CUTS ONCE AND FOR ALL!  WE ALSO NEED TO RESTORE MEDI-CAL FUNDING. 

Thank you for your quick action.  Physicians are an important political force.  If physicians remain unified and take action now – we can prevail! 

Sincerely,

James   T. Hay, MD

President