FOR IMMEDIATE RELEASE:
March 11, 2008

FOR INFORMATION CONTACT:
Laurie Peacock, 312-580-6497
(cell) 312-608-3620

Illinois State Medical Society President Testifies on Medicaid patient access bill before State Senate Committee

Springfield, Illinois— Today Illinois State Medical Society (ISMS) President Rodney C. Osborn testified before the Illinois Senate Public Health Committee on the critical need to improve access to Illinois’ health care safety net programs, Medicaid and All Kids.  Dr. Osborn spoke in support of Senate Bill 2173, which would boost the abysmally low Medicaid physician reimbursement rates to better address the escalating costs of health care. (Testimony attached.)

“Without increasing Medicaid rates, we’re risking patients’ access to care in Illinois,” stated ISMS President Rodney C. Osborn. “While as physicians, we’re strongly committed to serving those in need; we cannot continue to do so when our practice expenses increase far more rapidly than Medicaid reimbursement.”

The cost of practicing medicine has risen by more than 30 percent over the last ten years.  Medicaid rates have remained largely stagnant except for a 5 percent increase in 1999 (immediately rescinded the next year due to state budget reductions) and when the state raised 12 pediatric-related services in primary care in response to a court lawsuit. 

In a 2003 study by the Kaiser Family Foundation, Illinois ranked 42nd among states in terms of Medicaid rates when viewed as a percentage of Medicare.  The Illinois Medicaid program reimburses physicians on average only 56 percent of what the federal Medicare program pays for the same care.

While Medicare reimbursements are higher than Medicaid, they haven’t increased with inflation and are scheduled to decrease by more than 35 percent over the next several years – starting  with a 10.6 percent decrease in July – unless Congress changes the payment formula.

“The sad fact is that Illinois physicians face very difficult choices due to inadequate Medicaid reimbursements,” said Dr. Osborn.  “Whether these choices include limiting the number of Medicaid patients or dropping out of the Medicaid program altogether, many doctors are struggling with their desire to provide care for all versus the stark reality that they still need to pay office expenses like rent, staff salaries, medical liability insurance and medical equipment.  Medical practices are small businesses that must survive economically if doctors are to be available to provide care.”

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www.isms.org    

ISMS is a professional membership association representing over 12,000 physicians practicing in all medical specialties statewide.  Dr. Osborn is an anesthesiologist who practices medicine in Peoria, IL.