Annual Penny-Wise, Pound-Foolish Award Winner Announced

Faegre Drinker Biddle & Reath LLP
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When it comes to the annual Penny-Wise, Pound-Foolish Award, don’t ever bet against the United States Congress.  This year, Congress lay back in the weeds until the year was almost over before making its move for the trophy.  But when it finally came, what a move it was!

Under the Congressional spending bill passed on December 13, the 2015 Medicaid reimbursement rates for primary care physicians will be reduced—reduced below 2013 and 2014 levels.  That’s right:  the lowest-cost physicians participating in Medicaid will see a reduction in pay.  The move is bound to lower even further the number of family doctors accepting Medicaid patients.  And the number was already low.  In 2013 only half of all family doctors accepted Medicaid, down sharply from 65% the year before.

Medicaid covers about 63 million Americans—more than Medicare, more than any other plan in the country.  What will those 63 million people do as even fewer primary care doctors accept them as patients?  Well, history shows that a decline in care at the primary level directly results in utilization of higher-level, more expensive care.  One time-honored reaction to the unavailability of primary care is a trip to the emergency room.

That’s why once again Congress wins the 2014 Penny-Wise, Pound-Foolish Award—and wins it hands down!

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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