Introduction of the Medicare Anesthesiology Teaching Funding Restoration Act of 2007

Floor Speech

INTRODUCTION OF THE MEDICARE ANESTHESIOLOGY TEACHING FUNDING RESTORATION ACT OF 2007

* Mr. BECERRA. Madam Speaker, I rise today to introduce the bipartisan Medicare Anesthesiology Teaching Funding Restoration Act of 2007. This legislation is cosponsored by Representatives JIM RAMSTAD (R-MN), DARLENE HOOLEY (D-OR) and PETE SESSIONS (R-TX).

* This bill would restore 100 percent payment of the Medicare physician fee schedule (PFS) for teaching anesthesiologists involved in training physician residents in two concurrent anesthesia cases. The American Society of Anesthesiologists (ASA) has endorsed this important legislation.

* Paying teaching anesthesiologists 100 percent of the PFS for two concurrent anesthesia cases was the policy of Medicare until 1994. In that year, the Health Care Financing Agency (now called the Centers for Medicare and Medicaid Services) issued a rule reducing the Medicare payment to teaching anesthesiologists involved in training physician residents in two concurrent anesthesia cases to 50 percent for the second case. This rule has reduced the financial viability of medical schools and hospitals which have teaching anesthesiology programs.

* Since the 1994 rule change, 31 anesthesiology residency programs have closed. An ASA survey of anesthesiology residency programs found that the average program was losing $400,000 per year partially as a result of the payment reduction. Some programs serving larger Medicare populations report losses in excess of $1 million per year. The UCLA program reported annual losses in excess of $600,000.

* Many programs receive subsidies from their medical schools or universities to offset these losses. However, some programs are experiencing additional losses as local commercial health care providers, including United and Blue Cross/Blue Shield in selected areas, drop full payments for overlapping cases and adopt the Medicare 50 percent policy for their commercial beneficiaries.

* By passing this legislation, Congress would increase the flow of Medicare funds into these important teaching programs while also providing the programs an opportunity to dispute pay reductions by health care commercial providers. By increasing access to well-trained anesthesiologists, the ultimate result will be healthier patients.

* I urge my colleagues to support this bill and ensure that Americans have access to the highest quality anesthesiology services.

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