MOAA Warns About Proposed Medicare Cut

The Military Officers Association of America (MOAA) has weighed in against a 4.3 percent cut in provider reimbursement that Medicare has planned to begin in January 2006. The action would affect all Tricare beneficiaries because Tricare provider reimbursement rates are tied by law to Medicare’s. MOAA says, “We must protect against reductions in Medicare/Tricare rates, so that providers are willing to accept both Medicare and Tricare patients.” MOAA also took aim at the statutory reimbursement formula, stating that “it doesn’t accurately reflect the true cost of running a physician practice.” Legislation to raise provider reimbursement instead of cut it is contained in HR-2356, by Representatives Clay Shaw, R-Fla., and Ben Cardin, D-Md.; and S-1081 by Senators Jon Kyl, R-Ariz., and Jon Corzine, D-N.J. The House bill also would adjust the reimbursement formula but the Senate version would not.