Consequences of Cuts to Medicare

In the last several years, a constantly increasing number of physicians have begun refusing Medicare patients. If Medicare becomes one of the programs cut with the approximately $4 Trillion spending cut agreement made as part of the debt ceiling increase agreement, unless other changes are made in the program, many more physicians will stop taking Medicare patients.

One of the most significant negatives for physicians, is that the reimbursement rate by Medicare, and in some cases, the timeliness of payments, has declined. If there are further cuts to Medicare in the reimbursement rate, and no increases in Medicaid, even more doctors will not want to take Medicare or Medicaid patients, as it is just not lucrative enough for them. As an example, in Key West, there is only one remaining Pediatrician that accepts Medicaid.

Will Cuts to Medicare: Catastrophic?

The August 2nd bill approved by both Congress and the Senate, and signed by the President, raised the debt ceiling by close to a trillion dollars. As part of the agreement, cuts in spending programs are to slightly exceed the amount of the debt ceiling increase as a first step, and there will be approximately 2 trillion additional dollars in additional spending cuts in the next 10 years. The programs which will be cut have yet to be determined.

If cuts to Medicare take place, which will almost be a requirement due to the size of Medicare, and it being a big target for many politicians, with no accompanying increases in revenue, the consequences to Medicare recipients, mostly seniors, will be very significant.