[Off Topic & Political To Boot] Is AMA Fearful of Losing Lucrative Source of Revenue?
Tuesday, January 5, 2010 • 9:00 am
From a letter to the editor in The Wall Street Journal:
Unfortunately, the president of the American Medical Association, Dr. James Rohack, in his response ("AMA Is Working With the Senate," Letters, Dec, 28) to the Dec. 21 editorial "Change Nobody Believes In," does not indicate that his support is another unfortunate example of political deal-cutting in the guise of support for the disastrous health reform bill.
Democrats are touting the AMA's endorsement, little has been reported in the media that a large portion of the AMA's income (the exact amount will not be released by the AMA) stems from the exclusive rights to the medical billing codes that doctors are required to use when they submit bills to insurance plans.
These are essentially the same as a bar code, and are used for nearly every medical procedure, from appendectomies to heart transplants. This arrangement results from a once-secret deal established in the 1980s whereby the AMA maintains and updates the codes at no cost to the government, but generates millions each year selling the code books and software licenses to doctors and insurers. This enabled the government to streamline billing procedures for its insurance programs by setting a single code as the standard.
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The doctors were upset when it was introduced. There were eighty-eight codes for and office visit! The fee was set by the code used, and each code required certain documentation to prove you did it. Make an error and you could do jail time or just refund all the fees they had ever sent you. The AMA receives a copyright fee for the use of these and medical clinics must purchase annual updates. All this comes under “hassel factor” that makes doctors look longingle to other sources of income. Now the government has sent a directive that the big consult codes will not be recognized and another office code which is clearly not a consult must be used. But the correct code will still be needed for other insurance companies. Soon they will come out with a new diagnosis code that must match the procedure codes. This code will have over twice the number of old codes so back to school again. I think this is all soon to end. Meetings and classes are being held on how to get out of Medicare/Medicaid provider and some enen on getting out of insurance provider status. Cash businesses seems to be lucrutive in certain locations, especially as the waiting list grows longer. In areas that can’t support cash business, then doctors will just have to move to an area that does, or go into another business, retire, or go to a mission hospital. Developing….