ADVANCE American Medical Association Calls for Reform of Medicare.

(ADVANCE) SAN FRANCISCO--(BUSINESS WIRE)--Jan. 13, 1995--The American Medical Association is calling on Congress and the Clinton Administration to sit down with physician leaders and work on the reform of Medicare, based on six principles that would increase cost consciousness by patients and physicians and more equitably distribute the burden of financing between generations.

The AMA believes that the annual cycle of cuts in benefits and reimbursement has only exacerbated the problem of Medicare spending growth. Physician reimbursement, for example, stands at less than two-thirds of private sector rates leading to cost shifting, access problems and increased demand.

The AMA framework to reform Medicare was announced here today by the group's president-elect, Lonnie R. Bristow, M.D., in a nationally broadcast address before the Commonwealth Club of California, meeting at the Sheraton Palace Hotel.

"There won't be any Medicare at all for the next generation -- unless we make some serious changes now," Dr. Bristow declared. He insisted that Congress abandon such "bandaid" solutions as further cuts in medical reimbursements, which he said would only shift costs to private payers.

Bristow called for a treatment plan, built upon a set of six principles:

-- Giving Medicare patients a financial stake in their health care decisions by a system that could include Medical Savings Accounts and other instruments of personal monetary decision- making;

-- More equitable financing - hardpressed young people not saddled with bills for the affluent elderly;

-- Price competition - relaxing price controls;

-- Simplification - tearing down a regulatory "maze" that adds unnecessary costs and diverts resources away from patient care;

-- Physicians to join in a major campaign to curtail unwanted and inappropriate care, with revision of professional liability laws;

-- An unrelenting campaign to reduce fraud and abuse by a handful of unscrupulous practitioners.

In discussing fraud and abuse, Dr. Bristow disclosed that the AMA is working closely with the FBI to identify and pursue a small number of corrupt physicians and other health care workers. "We're giving them a wake up call," Bristow said, "Heal thyself -- and do it now!"

Recalling the failure of health reform in 1994, Dr. Bristow anticipated incremental changes this year, saying such changes will be good for patients, and pledging AMA support. But he cautioned that physicians must not be shut out of the process.

"Reforming health care without talking to the doctors is like reforming the courts without talking to the judges -- it makes no sense," he said. And he promised that "doctors are willing to share the sacrifice -- so long as we aren't the sacrifice.

"Provide all of Medicare for some of the people. And some of the Medicare for all of the people. And reduce the rate of spending at the same time....It's a win-win proposition....And I believe it can work if the politicians have the courage to try," he told his listeners. "So I have a message to our leaders in Washington: Do what's right, and do what's fair."

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Note to Editors: National Public Radio makes Commonwealth Club addresses available live. Consult local NPR stations for information.

(End of advance for release at 3:30 (ET) on Jan. 13, 1995)

CONTACT: American Medical Association

              Linda Mura, 312/464-4430
                 or
              Jim Stacey, 202/789-7419