Stop the 27 Percent Medicare and TRICARE Physician Payment Cut

Strategic Insights -

This Veterans Day, the American Medical Association and the Military Officers Association of America are urging Congress to intervene and prevent a 27 percent cut in Medicare and TRICARE physician payments. The cut, scheduled for January 1, would severely impact health care access for nearly 10 million military family members who rely on TRICARE. The organizations are calling on the Joint Select Committee on Deficit Reduction to take action and repeal the Medicare physician formula before the cut takes place. The goal is to protect health care access for seniors and America's military families.

Key Takeaways:

  • The Joint Select Committee on Deficit Reduction is being asked to repeal the Medicare physician formula to prevent a 27 percent cut in Medicare and TRICARE physician payments.
  • The cut would affect nearly 10 million military family members who rely on TRICARE for their health care needs.
  • Physician payments under Medicare and TRICARE have been nearly frozen for a decade, resulting in a 20 percent gap between payment updates and the cost of caring for seniors.
  • The 27 percent cut would be the largest ever scheduled and would force many physicians to limit the number of TRICARE and Medicare patients in their practice.
  • The Community Living Assistance Services and Supports (CLASS) Act, which was signed into law in 2010, has been a major contributor to the growing deficit and has resulted in the proposed cuts.
  • Veterans Day marks the opportunity for Congress to address the issue and protect the health care access of military families.
  • Organizations such as the American Medical Association and the Military Officers Association of America are advocating for the repeal of the Medicare physician formula to prevent the cut.
  • The cut would not only impact military families but also compromise the health care access of seniors, who would be affected by the proposed changes to the Medicare physician formula.

Statistics:

  • 27%: scheduled cut in Medicare and TRICARE physician payments on January 1, 2023
  • 10 million: number of military family members affected by the proposed cuts
  • 20%: gap between Medicare payment updates and the cost of caring for seniors
  • $80 billion: estimated deficit reduction from the proposed changes to the Medicare physician formula
  • 23 years: duration of Dr. Robert Wah's service in the United States Navy Medical Corps
  • 23 years: number of years Dr. Robert Wah has been a physician

Sources:

  • American Medical Association (AMA)
  • Military Officers Association of America (MOAA)
  • Joint Select Committee on Deficit Reduction (JSCDR)