I'm a Medicare doctor. Here's what I make
CNN Money, March 6th, 2010
When you think of low-paying jobs, doctor doesn't usually come to
mind.
But with a 21% cut in Medicare payments slated to take
effect later this month, physicians who say they are making an OK living
may be reduced to income levels that no longer make their profession
viable. That's especially true for those still paying medical school
costs and other training.
"The cuts will hit me," said Dr. William Schreiber, a primary care
physician based in North Syracuse, N.Y.
Schreiber sees 120
patients a week. About 30% of them are enrolled directly in Medicare,
while another 65% have private insurance plans that peg their payments
on Medicare's rates. Only 5% pay on their own.
As a result,
Schreiber expects the cuts to take away $3 out of every $5 he currently
earns. And, as a primary care physician, he already wasn't earning
anything near the salary of a specialist.
"After the costs of my
own benefits are deducted, that will leave me with the equivalent of a
minimum wage job," he said.
Unless Congress acts to adjust
Medicare payments without considering the impact of rising health care
costs, Schreiber said he could be forced into bankruptcy or shut his
practice.
Cost of care
Schreiber,
who employs two nurse practitioners, agreed to break down the costs
associated with running his practice.
He spends about $60,000 a
month on "fixed costs" to run his practice. "That's more or less my
breakeven point," he said. "If I spend more, I'm in the red for the
month."
Read more of this article.
Supplemental Medicare Insurance: With or without the cuts being discussed, it's unlikely that Medicare will be able to cover all of your medical needs as you move through retirement. Consider whether purchasing supplemental insurance is the right move at NewRetirement.com