This week, I made a pilgrimage to Washington DC to attend a reception in the White House Rose Garden at the invitation of President Obama. It was a heady moment for this new CEO of the American Geriatrics Society and the Health in Aging Foundation. My 91-year old mother and her friends were quite impressed–going so far as to ask me to put in a good word for older adults. Got that covered, Mom.
Putting aside the excitement of seeing the Rose Garden and shaking President Obama’s hand (I admit shaking a President’s hand is really exciting), why was this moment so important for geriatrics health professionals and the older adults they serve? Congress, in a rare bi-partisan, bicameral moment, had passed The Medicare Access and CHIP Reauthorization Act and President Obama signed it into law April 16, 2015.
I won’t go into all the details of the bill here—nor will I try to explain the Sustainable Growth Rate (SGR), which may be what you heard a lot about in the news related to this legislation. Suffice it to say, this new legislation finally fixes a huge problem for geriatrics health professionals and the older adults they serve.
Geriatrics health professionals are specially trained to care for older adults (learn more about these professionals here; we can even help you find one here). Having benefited from their expertise as a family caregiver, I know first hand how different it is to partner with someone with this kind of training when caring for my loved ones. They always start the care process by considering what matters to older patients and their families as people, and then work back to how they can help you get there.
Geriatrics healthcare professionals are pretty much wholly paid by Medicare, so a looming cut in payment of more than 20% annually is a big deal when you still have practice expenses to pay (that’s what these health professionals faced under the old SGR system). We don’t often talk about the business of medicine, but if you are in private practice you have expenses just like any other business. These include rent, staff (most geriatrics health professionals work in teams), equipment, supplies; malpractice insurance and your own health insurance. Like any other business, a sharp drop in revenue could endanger your ability to provide services. And that, in a nutshell, was the broader threat of the old SGR formula. With a stroke of the President’s pen, that threat is gone.