Some members of Congress have described this move as “eliminating a big increase for physicians.” They point out that Medicare will pay more to physicians in 2012 than in 2011. This is true when speaking of total dollars spent by Medicare.

Medicare will pay more to physicians as a group for all services to all Medicare patients because, with the aging of the Baby Boom generation, the number of Medicare patients grows by almost 10,000 people per day. In addition, the current Medicare population keeps getting older, requiring more medical care. However, what your doctor will be paid for providing a single episode of medical service to you will be reduced by 27.4 percent. This is an extremely important and relevant distinction.

Washington views Medicare from a global perspective, but it ignores the impact this cut will have on you and your doctor as individuals. Simply put, your doctor will have little economic incentive to provide care to you as a patient. In fact, such a cut could result in some services costing the physician more to provide than he will be paid. The bottom line is that seniors may find it increasingly difficult to find a physician who is either willing or financially able to provide services to Medicare patients if the cuts go through as planned.