Understanding the AMA’s Position…They Support HR 3962…or Do They???

Much has been made about the AMA’s support for the House Health Reform bill passed last weekend.  But as I read through their resolution on the subject, I count 10 resolutions that are directly contradicted by HR 3962.   the full resolution is here and itemized below with my highlights added to identify the areas that are contradicted by HR 3962.

So what gives?  In short, it is HR 3961, the companion bill that specifically repeals the 21.5% cut in Medicare reimbursements pegged to begin on January 1, 2010.  A cynic would say that their support has been bought and paid for, except for the fact that 3961 has not been raised yet in the House and a similar measure (was soundly defeated in the Senate in October.

The thing that troubles me most about all of this is the fact that HR 3962 relies on $426 billion of Medicare/Medicaid cuts to pay for almodt half of the bill, at the same time that they are repealing the planned cuts scheduled for next year…How can they say with a straight face that they will ever realize the intended savings when they need to add back in $250 billion before the bill even becomes law?

Anyway, see the areas highlighted below in which HR 3962 directly contradicts the AMA resolution, and other areas that (in my opinion) are likely consequences of the bill.

RESOLVED, That our American Medical Association is committed to working with Congress, the Administration, and other stakeholders to achieve enactment of health system reforms that include the following seven critical components of AMA policy:

  • Health insurance coverage for all Americans;
  • Insurance market reforms that expand choice of affordable coverage and eliminate denials for pre-existing conditions or due to arbitrary caps;
  • Assurance that health care decisions will remain in the hands of patients and their physicians, not insurance companies or government officials;
  • Investments and incentives for quality improvement and prevention and wellness initiatives;
  • Repeal of the Medicare physician payment formula that triggers steep cuts and threaten seniors’ access to care;
  • Implementation of medical liability reforms to reduce the cost of defensive medicine; and
  • Streamline and standardize insurance claims processing requirements to eliminate unnecessary costs and administrative burdens; and be it further

RESOLVED, That our American Medical Association advocate that elimination of denials due to pre-existing conditions is understood to include rescission of insurance coverage for reasons not related to fraudulent representation; and be it further

RESOLVED, That our American Medical Association House of Delegates supports AMA leadership in their unwavering and bold efforts to promote AMA policies for health system reform in the United States; and be it further

RESOLVED, That our American Medical Association support health system reform alternatives that are consistent with AMA policies concerning pluralism, freedom of choice, freedom of practice, and universal access for patients; and be it further

RESOLVED, That it is American Medical Association policy that insurance coverage options offered in a health insurance exchange be self-supporting, have uniform solvency requirements; not receive special advantages from government subsidies; include payment rates established through meaningful negotiations and contracts; not require provider participation; and not restrict enrollees’ access to out-of-network physicians; and be it further

RESOLVED, That our AMA actively and publicly support the inclusion in health system reform legislation the right of patients and physicians to privately contract, without penalty to patient or physician; and be it further

RESOLVED, That our AMA actively and publicly oppose the Independent Medicare Commission (or other similar construct), which would take Medicare payment policy out of the hands of Congress and place it under the control of a group of unelected individuals; and be it further

RESOLVED, That our AMA actively and publicly oppose, in accordance with AMA policy, inclusion of the following provisions in health system reform legislation:

  • Reduced payments to physicians for failing to report quality data when there is evidence that widespread operational problems still have not been corrected by the Centers for Medicare and Medicaid Services;
  • Medicare payment rate cuts mandated by a commission that would create a double-jeopardy situation for physicians who are already subject to an expenditure target and potential payment reductions under the Medicare physician payment system;
  • Medicare payments cuts for higher utilization with no operational mechanism to assure that the Centers for Medicare and Medicaid Services can report accurate information that is properly attributed and risk-adjusted;
  • Redistributed Medicare payments among providers based on outcomes, quality, and risk-adjustment measurements that are not scientifically valid, verifiable and accurate;
  • Medicare payment cuts for all physician services to partially offset bonuses from one specialty to another; and
  • Arbitrary restrictions on physicians who refer Medicare patients to high quality facilities in which they have an ownership interest; and be it further

RESOLVED, That our American Medical Association continue to actively engage grassroots physicians and physicians in training in collaboration with the state medical and national specialty societies to contact their Members of Congress, and that the grassroots message communicate our AMA’s position based on AMA policy; and be it further

RESOLVED, That our American Medical Association use the most effective media event or campaign to outline what physicians and patients need from health system reform; and be it further

RESOLVED, That national health system reform must include replacing the sustainable growth rate (SGR) with a Medicare physician payment system that automatically keeps pace with the cost of running a practice and is backed by a fair, stable funding formula, and that the AMA initiate a “call to action” with the Federation to advance this goal; and be it further

RESOLVED, That creation of a new single payer, government-run health care system is not in the best interest of the country and must not be part of national health system reform; and be it further

RESOLVED, That effective medical liability reform that will significantly lower health care costs by reducing defensive medicine and eliminating unnecessary litigation from the system should be part of any national health system reform; and be it further

RESOLVED, That our American Medical Association reaffirm AMA policy H-460.909 Comparative Effectiveness Research.

About Bill Carew

Bill Carew is President & Chief Executive Officer responsible for the strategic, operational and financial performance of the company. With more than 24 years of experience in the industry, Bill is a recognized authority on health and employee benefits strategy, financing, and insurance underwriting, and is a leading advocate for the incorporation of wellness and health improvement strategies in the workforce. He has held management, consulting and sales positions in various markets around the country with Metropolitan Life, CIGNA Healthcare, and the former Johnson and Higgins (now Marsh) companies. In 1992, he co-founded Carew, Driscoll & Associates, Inc. and in 2002 merged the firm with BENEFITSource to form Ovation Benefits Group.
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