July 31, 2007


On behalf of the more than 105,000 members of the Association of the United States Army, I write to urge you to reverse the planned 9.9% reduction in the Medicare Physician Payment rate set to occur in January 2008 and replace it with a rate increase.
In the past, Congress reversed similar proposed cuts, and in 2003, actually increased the rate. Without changing the statutory payment-setting formula, immediate action is necessary to forestall serious adverse consequences for Medicare and military beneficiaries.

Declining participation of providers in Medicare and TRICARE due to low reimbursements is a serious healthcare problem facing Medicare-eligibles and military beneficiaries of all ages. Since TRICARE payment rates are tied to Medicare’s rates, any reductions adversely impact all military beneficiaries, not just those over age 65.

Finding doctors who accept TRICARE is an enormous problem for the military community - particularly for Guard and Reserve families, retirees, and survivors who live in areas with a small military population. Payment cuts will make the situation even worse, whereas a payment increase will be a first step to correcting the problem.

Service members in harm’s way should not have to worry about their families’ healthcare. There will be long-term negative consequences to retention and readiness if the military TRICARE program cannot provide access to quality care.

Again, I urge you to reverse the 9.9% Medicare/TRICARE payment cut scheduled for January 2008 and provide an increase in physician payment rates.

GORDON R. SULLIVAN
General, USA Retired