After years of last minute fixes, the Obama administration signed legislation Thursday April 16 to change how Medicare pays providers who participate in the Medicare system. This bill replaces a 1997 law which was intended to slow Medicare’s growth by limiting and even cutting payment to physicians. In fact the scheduled cut was 21% for 2015. Congress has been blocking the cuts for years at the eleventh hour as physicians have threatened to leave the Medicare program and leave Medicare beneficiaries without suitable healthcare.
Medicare covers 50 million people disabled or age 65 and older. Currently payments to providers are paid on a fee-for-service basis (paid separately for each procedure). Starting in 2016, 30% of payments will be based on quality of care being delivered by doctors and healthcare facilities. By 2018 the target is to put 50% of payments under the new system.
President Obama invited Republican and Democratic policymakers to a reception at the Rose Garden being held on Tuesday April 21st to celebrate their bipartisan effort.
We at VibrantUSA feel that this is a good news for Medicare beneficiaries as it will hopefully improve access to Medicare participating providers and perhaps more providers will decide to participate without a large pay cut impending.
Renee Marr
Vice President & Licensed Insurance Specialist
Renee has spent more than 20 years in the fields of insurance, investments, health care reimbursement and tax law. She has been with VibrantUSA since its inception and has played an essential role in moving the company forward. She is the first recipient of the company’s Cornerstone Award in recognition of outstanding performance and achieving sales in excess of 2,000. Renee is a graduate of Western Washington University majoring in English. She enjoys reading, cooking, boating, good wine and spending time with her loved ones. Renee lives with her husband and son in Bellingham, WA.
