[Congressional Record (Bound Edition), Volume 153 (2007), Part 7]
[Extensions of Remarks]
[Page 10606]
[From the U.S. Government Publishing Office, www.gpo.gov]




     INTRODUCTION OF THE MEDICARE ANESTHESIOLOGY TEACHING FUNDING 
                        RESTORATION ACT OF 2007

                                 ______
                                 

                          HON. XAVIER BECERRA

                             of california

                    in the house of representatives

                        Thursday, April 26, 2007

  Mr. BECERRA. Madam Speaker, I rise today to introduce the bipartisan 
Medicare Anesthesiology Teaching Funding Restoration Act of 2007. This 
legislation is cosponsored by Representatives Jim Ramstad (R-MN), 
Darlene Hooley (D-OR) and Pete Sessions (R-TX).
  This bill would restore 100 percent payment of the Medicare physician 
fee schedule (PFS) for teaching anesthesiologists involved in training 
physician residents in two concurrent anesthesia cases. The American 
Society of Anesthesiologists (ASA) has endorsed this important 
legislation.
  Paying teaching anesthesiologists 100 percent of the PFS for two 
concurrent anesthesia cases was the policy of Medicare until 1994. In 
that year, the Health Care Financing Agency (now called the Centers for 
Medicare and Medicaid Services) issued a rule reducing the Medicare 
payment to teaching anesthesiologists involved in training physician 
residents in two concurrent anesthesia cases to 50 percent for the 
second case. This rule has reduced the financial viability of medical 
schools and hospitals which have teaching anesthesiology programs.
  Since the 1994 rule change, 31 anesthesiology residency programs have 
closed. An ASA survey of anesthesiology residency programs found that 
the average program was losing $400,000 per year partially as a result 
of the payment reduction. Some programs serving larger Medicare 
populations report losses in excess of $1 million per year. The UCLA 
program reported annual losses in excess of $600,000.
  Many programs receive subsidies from their medical schools or 
universities to offset these losses. However, some programs are 
experiencing additional losses as local commercial health care 
providers, including United and Blue Cross/Blue Shield in selected 
areas, drop full payments for overlapping cases and adopt the Medicare 
50 percent policy for their commercial beneficiaries.
  By passing this legislation, Congress would increase the flow of 
Medicare funds into these important teaching programs while also 
providing the programs an opportunity to dispute pay reductions by 
health care commercial providers. By increasing access to well-trained 
anesthesiologists, the ultimate result will be healthier patients.
  I urge my colleagues to support this bill and ensure that Americans 
have access to the highest quality anesthesiology services.

                          ____________________