June 16, 2008

 

 
TOA President's Update: Call To Contact Your Legislators
  

By Timothy L. Beck, MD
President, Texas Orthopaedic Association

Most of you received the Medicare Alert from David Halsey, MD, reminding us about the 10.6 percent payment cut which will go into effect on July 1, 2008 if Congress doesn’t intervene. The article below, Legislative Alert – Medicare Physician Payment Formula will give you the details and history of the proposed Medicare cut. It is very important

that TOA members write our U.S. Representatives.

I urge you to read Dr. Halsey’s Medicare Alert and to make a phone call or send a fax to your member of Congress and send a letter to the editor of your local newspaper.  Click on these links for examples: Sample Letter to the Editor and Fax/Talking Points to your U.S. legislators.

TMA Past President, Dr. William Hinchey, said it best in February 2008. “Although the last-minute fix forestalled an arbitrary 10-percent cut imposed on physician practices, we believe there is no acceptable solution other than a permanent fix to the Sustainable Growth Rate (SGR) funding formula. Anything less amounts to the government abandoning its commitment to senior citizens. Neither our patients nor their physicians can live with all this uncertainty.” said Dr. Hinchey.

This is an issue of access to quality medical care for our senior citizens in this country.
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Betts Announces Resignation From TDI Position
 
  

Albert Betts, Commissioner of Workers' Compensation at the Texas Department of Insurance (TDI), has announced he will resign Aug. 31.

Betts was appointed as the Workers' Compensation Division's first commissioner in 2005. He had previously served as chief of staff for TDI as well as deputy commissioner for human resources and assistant general counsel to the commissioner. Betts has also been an assistant

attorney general in the Office of the Attorney General, assistant general counsel at the Texas Workers' Compensation Commission and general counsel for the State Office of Risk Management.

Betts, in a statement, said the division has "accomplished much" in the three years he served as commissioner, "working to reform the agency itself to become an effective regulator and manager of the workers' compensation system in Texas." He said the future looks bright for Texas workers' compensation. Insurance Commissioner Mike Geeslin called Betts "a great leader" who took on the difficult assignment of merging two agencies while implementing major reform legislation.

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This Week In Texas: Mignon McGarry Memos

By Mignon McGarry
TOA Legislative Advocate / Memo: Wed. November 28th, 2007
TOA Online Version: All Memos

 

June 11, 2008, Wednesday
In Austin, all eyes have been on the Governor’s Mansion this week. Driving by, my eyes were drawn to the charred columns and sunken

rooftop. The search continues for the person responsible for the damage and promises have been made to restore and rebuild the structure. Luckily, the invaluable furnishings are tucked away in a storage facility and Governor Perry and his family are safe in the temporary home they have resided in for almost a year. Pictures of the damage can be found on Governor Perry’s website by clicking here.

Paul Hudson has announced that he will leave the Public Utility Commission in August. Hudson has served on the PUC for five years.

The Texas Commission on Environmental Quality has appointed a new executive director. Mark Vickery, the agency's deputy executive director since May 1, 2004, will be the new executive director, effective June 17. He is succeeding Glenn Shankle, who is retiring from state government.

Albert Betts, the commissioner of workers’ compensation for the Texas Department of Insurance is retiring in August. No word yet on his replacement.

As Texans schedule appointments with their local appraisal districts to protest their property taxes, the Senate Finance Subcommittee on Property Appraisal and Revenue Caps will meet June 16th in Austin. The House Select Committee on Property Tax Relief and Appraisal Reform will meet in Austin the following day.

Texas Democrats convened in Austin last week for their annual convention and Texas Republicans will meet in Houston this weekend.

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Legislative Alert - Medicare Physician Payment Formula
 
  

As expected, last Thursday's Senate vote on whether to consider the Baucus Medicare package failed. As both parties begin to negotiate compromises on their respective bills, we urge Senate leaders to work on a bill that can enjoy broad bipartisan support in the Senate and be

enacted into law before the 10.6 percent cut goes into effect on July 1, 2008.

With the July 1st deadline approaching, we encourage all AAOS Fellows to contact their Senators at (202) 224-3121 (the US Capitol Switchboard). If you do not know who your Senators are or would like to contact their offices directly, please visit this link.

The rest of this article will give you more information and history on the status of the Medicare Physician Payment Formula.

Finding a permanent solution to the flawed Medicare physician payment formula continues to be the highest priority for the AAOS. This special AAOS Advocacy Now update provides the orthopaedic community with the latest information on averting the 10.6 percent payment cut which will go into effect on July 1, 2008 without Congressional intervention.

Senate Finance Committee Chair Max Baucus (D-MT) released a bill to stop the July 1, 2008 physician payment cut that would otherwise take effect under the Medicare sustainable growth rate (SGR) formula. The Baucus package would continue the 2008 payment rates through the end of the year and provide a 12-month 1.1 percent update beginning January 1, 2009. The package also includes other Medicare provisions regarding budget neutrality, e-prescribing, quality reporting, and imaging accreditation. These imaging provisions are particularly troublesome for specialty societies, such as orthopaedic surgeons, where imaging is integral to quality patient care. Perhaps most problematic, the bill is partially financed out of future physician payments, which could lead to a 20 percent cut in 2010.

Also, Senate Finance Committee Ranking Member Charles Grassley (R-IA) released the Republican package with similar provisions, including keeping payments level through the rest of 2008 and providing a 1.1 percent update for 2009. The Republican package does not include the budget neutrality adjustment. The Republicans have not as of yet issued the actual legislative language.

The main difference between the bills is the financing mechanism – the same issue over which bipartisan talks broke down several weeks ago. The Democrat package relies on cuts to Medicare Advantage private fee for service plans and Medicare Advantage indirect medical education payments (IME), while the Republican package is expected to rely almost solely on the Medicare Advantage IME payment reductions.

While the entire physician community applauds the Senate Democrats and Republicans for proposing an 18- month plan to stop the cuts and provide a positive update. At this time, each party is working separately on their respective bills.

We continue to urge the Senate to work on a bill that can enjoy broad bipartisan support in the Senate and be enacted into law before the 10.6 percent cut goes into effect on July 1, 2008 and work on a long term solution for fixing the SGR. While at this time it may not be in the best interest of the orthopaedic community to endorse these packages, we applaud efforts to correct the flawed physician payment formula.

For AAOS Fellows who feel compelled to contact their Senators, at (202) 224-3121 (the US Capitol Switchboard), please be advised that some provisions in the legislation moving through Congress may not be in the best interest of the orthopaedic community. Therefore, any call to your U.S. Senators should emphasize that:

  • The deadline for enacting a fix is quickly approaching;

  • Allowing the cut to go into effect will have a detrimental effect on Medicare patient’s ability to access care;

  • An 18-month positive update must be enacted to prevent physicians from leaving the Medicare program; and

  • Including a provision that moves the budget neutrality adjuster from Medicare work values to the Medicare conversion factor will help bring equity and fairness to Medicare payment calculations.

The AAOS Office of Government Relations, working closely with AAOS leadership, especially the Chair of the AAOS Council on Advocacy, have been engaged and present at all meetings with U.S. Senators and their staff.

We will continue to provide you with updates as appropriate as we, in the short-term, avert the payment cut, and in the long-term, find a permanent solution to the flawed payment formula.

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