As if we all didn't know about the looming disaster with baby-boomers retiring, the New York Times has more on spending cuts in Medicare:
The Bush administration is headed for a clash with the nation's doctors over a federal plan to cut their Medicare fees by 4.4 percent next year, even as the government tries to measure the quality of care they provide.Yeah, a 25% cut in physician fees for Medicare is really not going to fly for long.
Doctors say that if the cut occurs, some physicians will be less willing to accept new Medicare patients.
Administration officials said that on Monday they would publish a final rule cutting 4.4 percent from the amount paid to doctors for each service provided to Medicare patients in 2006. They said the cut was required by a formula in the Medicare law. But doctors pointed out that President Bush had not proposed any specific legislation to avert the cut.
In a report to Congress in April, Medicare's trustees said the formula would produce cuts totaling roughly 25 percent from 2006 to 2011, while doctors' costs are expected to rise 15 percent.