New Medicare Law Has Other Provisions, Will Affect Mental Health Care, Rxs

The new Medicare law passed this month as a result of massive lobbying from AARP and other interested consumers will do more than protect doctor payments. Physicians are breathing a bit easier that they will not be subjected to a cut of nearly 10% in their fees. But counselors and others in the mental health field are also relieved that their patients are no longer discouraged from seeking treatment.

Previously, mental health patients had to pay for half their health care. Now they get much needed relief, now that their out of pocket expenses are capped at 20%. [NOTE: this reduction phases in gradually thru 2014.] A few more popular drugs are added to the formulary too, drugs like anti-anxiety and sleep aids that were never covered before. That change will not go into effect till 2013, so till then you will just have to count sleep.

Even more important is a boost for preventive health care. It is now easier and cheaper for Medicare recipients to get a physical checkup. Preventive medicine and a drop of progressivism could go far to reduce the rates of diabetes, heart disease, and hypertension.

The alternative to traditional Medicare, called Medicare Advantage, is getting a few reductions. The main cutback is in the list of doctors who patients will be allowed to see.

One other change is intended to encourage physicians to embrace electronic prescriptions. At first they will get a carrot -- the plan initially boosts payments to doctors for writing electronic prescriptions. Later, it uses a stick -- docking their payments for still hand writing them. The higher reimbursement at first will help defray physicians’ expenses for installing digital prescription software and hardware.

Currently, about 70% of pharmacies are geared up and ready to process electronic prescriptions, yet only about 40,000 doctors are converted to that digital technology.