Automatic 2 percent Medicare cut would take a heavy toll on health industry, groups warn

Health care provider organizations have joined forces to urge Congress to avert Medicare cuts and spare jobs.

Kaiser Health News: Capsules: Health Care Jobs Report: A Dire Warning To Congress
The report, funded by the American Hospital Association, the American Medical Association and the American Nurses Association, predicts that the 2 percent cuts to Medicare providers included in the 'budget sequester' beginning in January will cause as many as 766,000 health care and health-related jobs to disappear by 2021. An estimated 496,000 jobs will be lost during the first year of the automatic cuts (Kulkarni, 9/12).

Medscape: Automatic 2% Medicare Cut Will Cost 767,000 Jobs, Study Says
The cut, which will affect physicians, hospitals, and other providers, but leave enrollee benefits untouched, is scheduled to take effect January 1, 2013, unless Congress acts to nullify it. The AMA and 124 other medical societies urged lawmakers in a letter today to spare physicians this 2% reduction as well as a 27% pay cut next year that is mandated by Medicare's sustainable growth rate formula (Lowes, 9/12).

Medpage Today: Medicare Cuts Will Cost 500,000 Jobs, Groups Say
The model for the new study, conducted by Pittsburgh-based consultant Tripp Umbach, projected cuts of $10.7 billion in 2013 using baseline spending impacted by Medicare payments. Job losses include those involved in direct patient care as well as support roles. Not only will health sector jobs be lost, but a slowdown in spending by health entities will lead to job losses in companies and organizations whose clients are health-related (Pittman, 9/12).

CQ HealthBeat: Groups Lobby Congress To Avoid Sequester Cuts
A variety of health-related interest groups are releasing reports and doing all they can to pressure Congress to stave off cuts affecting their industry that are scheduled to hit on Jan. 2. Last year's budget deal requires $1.2 trillion over a decade in automatic across-the-board cuts for some federal programs to take effect unless Congress finds an alternative. Most policy analysts expect lawmakers to get more serious about funding and tax decisions after the November elections (Adams, 9/12).

The Hill: Medical Coalition Urges Congress To Avert 'Devastating' Medicare Cuts
"We believe the Congress should not abdicate its responsibility to deliberate and make policy decisions on what is important and needs to be funded," the letter tells lawmakers, referring to the automatic, across-the-board cuts ordered by the sequestration (Viebeck, 9/12).