Congress Hears Cry for Medicare Provider Funds

White House Reluctant to Restore Funding

January 29, 2003
Following furious lobbying efforts by doctors, hospitals, aging organizations and home health care providers, more than two-thirds of the members of the House have signed a letter calling for more funds for Medicare providers.

The letter, bearing 293 signatures, was sent to House Speaker Dennis Hastert (R-Ill.) and Minority Leader Nancy Pelosi (D-Calif.).

Rep. Benjamin Cardin (D-Md.) and Dave Camp (R-Mich.) led the effort. They cited serious problems for nursing homes, hospitals, home health care agencies, physicians and other providers if action was not taken to correct miscalculations in 1997 Congressional legislation that have resulted in cuts to providers.

"We are seriously concerned that many Medicare beneficiaries in our districts are losing access to vitally important health care services due to the inadequacy of current Medicare payment rates," the letter said. "Congress must take immediate action to address this urgent crisis."

The White House, however, has said the nation cannot afford to restore funds cut from all programs and said lawmakers have already restored some of teh cuts. The Bush Administration has said it agrees with the need to prevent doctors' payments from being cut, however.

A recent study from the American Medical Association concludes that nearly half of all U.S. physicians said they would limit their Medicare practice if the 2003 projected 4.4 percent payment cuts aren't changed. Physicians took a 5 percent hit the year before.