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U.S. Rep. Braley: Introduces bill to keep doctors in Iowa
6/22/2007

Contact: Jeff Giertz, Communications Director
jeff.giertz@mail.house.gov
(202) 226-4026 (office)
(202) 297-6745 (cell)

Measure Would Increase Medicare Reimbursement Rates to Retain Doctors

Washington, DC – Today, Rep. Bruce Braley (D-Iowa) introduced a bipartisan bill that would increase Medicare reimbursement rates for physicians in Iowa and other rural states. The legislation would help Iowa retain doctors and improve patient access to quality healthcare.

Freshman Rep. Adrian Smith (R-Nebraska) is co-sponsoring the bill with Rep. Braley, and the bill—titled the Medicare Equality and Accessibility Act of 2007—already has the strong support of the Iowa Medical Society.

“There is a ‘brain drain’ of doctors from Iowa and other small, rural states,” Rep. Braley said. “States with higher Medicare reimbursement rates are more attractive to practicing doctors. If you can earn more practicing medicine in California than in Iowa, then you’re more likely to practice in California.

“This legislation will address the problem by putting a permanent floor on Medicare reimbursement rates for doctors’ services and practice expenses—a floor above current rates in Iowa. This will have the effect of raising reimbursement rates to doctors and will make Iowa a more attractive place for doctors to settle and practice.”

Medicare reimbursements to physicians (Medicare Part B) are calculated based on two primary indexes: (1) the cost of doctors’ labor and (2) the cost of physical expenses like office space and equipment. Especially important to Medicare when calculating these two indexes is the cost of doing business in a given geography.

Medicare considers the cost of business in Iowa and other rural states to be low, and this negatively impacts the amount doctors are reimbursed for their services. For example, in Santa Clara, California, a doctor performing a cataract removal would receive a $814.68 reinbursement from Medicare for the procedure. In Iowa, a doctor would receive only $600.00 for the procedure—over 25 percent less than the California doctor.

Braley’s bill will set a permanent floor on the two indexes, resulting in higher Medicare reimbursements for doctors in Iowa and other similar states. Higher reimbursements mean that doctors receive fairer compensation for their services and are more attracted to practicing medicine in Iowa.

For more information on Braley’s bipartisan Medicare Equality and Accessibility Act of 2007, please see the attached fact sheet. Also attached is a resolution the Iowa Senate passed earlier this year calling for the change mandated by Braley’s bill.


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