What Does Healthcare Reform Mean for Physicians?

Healthcare Reform Legislation

The new healthcare legislation is expected by some to benefit many people, and is intended to make it possible for more Americans to have insurance and receive healthcare. It will expand coverage to more than 32 million Americans, including individuals with preexisting conditions who could not previously get coverage.  Additional goals of the reform plan are to reduce federal budget deficits while giving consumers greater leverage with private insurance companies.

However, the verdict is still out on how the new legislation will affect doctors. While many primary care physicians may benefit from now receiving Medicare reimbursement rates, specialists’ reimbursement rates for the newly insured Medicaid payments will not be raised to Medicare levels. In addition, a 3.8 percent tax will be levied on unearned income, such as interest income and capital gains, for individuals earning more than $200,000 as an individual or $250,000 for married couples. There will also be a 1 percent tax increase on people who make more than half a million per annum. Since many doctors fall in these categories, they will be amongst the hardest affected financially by the new legislation.

In addition, the new legislation does not include a tort reform provision, meaning physicians will continue to practice defensive medicine.  Cost containment measures have also been omitted from the package. More still, many opponents of the bill say the new budget cannot ultimately fund the healthcare reform, meaning additional taxes may have to be implemented or physician payments may need to be reduced to pay for the healthcare reform.

The legislation also included a provision to increase taxes on medical device companies by 2.3%.  These additional costs that will be incurred by device companies will likely be reflected in either higher prices or by less investment in research and development of innovative products that can improve the quality of life for many.

Sources:
http://www.medscape.com/viewarticle/719014
http://www.cbsnews.com/8301-503544_162-20000846-503544.html
http://www.kff.org/healthreform/upload/8061.pdf
http://albany.bizjournals.com/albany/stories/2010/03/29/daily52.html