Smith Legislation Will Increase Medicare Reimbursements for Rural Doctors
Congressman Adrian Smith (R-NE), co-chair of the Congressional Rural Caucus, today joined with Rep. Bruce Braley (D-IA) to introduce the Medicare Equity and Accessibility Act of 2009, legislation designed to increase access to health care in rural communities by ensuring rural doctors receive a more equitable share of Medicare funds.
The legislation would improve the Medicare Part B reimbursements for health care professionals serving rural areas by correcting a flawed geographic adjuster in the Part B equation.
Medicare law specifies a formula for calculating the annual update in payments for physicians' services. A portion of the physician fee schedule is based on Geographic Practice Cost Indices (GPCIs) ratios.
The GPCIs for each state are based on factors such as average employee wages, rents, medical equipment and supplies, etc. Rural states, which generally have lower costs of living, have lower GPCIs - effectively guaranteeing physicians in rural states receive reimbursements at a lower rate.
"This legislation is needed. Unless a fix is enacted, payments to medical professionals in rural areas will drop significantly in 2010, dramatically impacting care.
"It's simple, really. Rural communities depend on their health care professionals and we need to do what we can to recruit and retain quality physicians," Smith said.