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| Wilson Urges Medicare Director to End Medicare Payment Discrimination for New Mexico |
February 14, 2002 |
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Washington, DC-In a Commerce Committee hearing on Medicare reimbursement policies, Congresswoman Heather Wilson today urged Medicare Director Thomas Scully to end discrimination against states like New Mexico that are underfunded by Medicare reimbursement formulas tht penalize poor states and states that have efficient health care systems.
“New Mexicans don`t pay into Medicare based on where they live. And we should not be denied access to quality health care because of where they live. Thousands of New Mexicans rely on Medicare for their healthcare, and most private insurance companies tie their reimbursement rates to what Medicare will pay. These reimbursement schedules that pay doctors more for the same service in other states is the number one reason why we are losing Doctors in New Mexico,” said Wilson. "Enough is enough. We need to change this system."
Medicare has reimbursement schedules for over 7,000 different procedures or services provided by Doctors. Each service is adjusted by a formula that includes a geographic factor in different counties. For all procedures and reimbursements combined, in fiscal year 2000, the Federal government paid $3,726 per enrollee for Medicare in New Mexico. They paid $6,539 per enrollee in Texas, $5,100 in Colorado, and $4,464 in Arizona. Only 5 states or territories were reimbursed less per enrollee than New Mexico -- Puerto Rico, Vermont, Virgin Islands, Iowas and Maine. (Source: Health Care Financing Administration Medicare Estimated Benefit Payments by State for Fiscal Year 2000)
During this time of economic hardship, reductions in reimbursements for Medicare reimbursements are especially painful. They cause private insurance rates to go up and small businesses to stop carrying insurance for their employees.
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