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Congress To Seek $100 Billion In Medicare Savings


While physicians are hoping Congress will repair their broken payment formula and avert cuts averaging 5 percent for the next half dozen years, Congressional aides are looking to Medicare for steep savings.

Congressional aides are saying they want to see $100 billion in savings from Medicare this year, to provide more money for President Bush's priorities, says Washington attorney James Pyles with Powers Pyles Sutter & Verville. Bush is imposing a strict spending formula, allocating as much money as possible to Iraq and Social Security plans.

"It will be the rare and lucky provider segment that escapes cuts," says Pyles. However, he adds that physicians probably will have that enviable good fortune because of the well-known problems with their Sustainable Growth Rate formula.