The Bush administration’s announcement about the 10 percent fee cut in Medicare payments for doctors managed to cause wide distress throughout the industry. Many doctors stated that if the 10 percent payment reduction will be indeed approved, they will no longer afford to see Medicare’s patients. With the new bill, doctors would end up paying for every patient what would walk through the door instead of being awarded for their work and actually making a profit.

In a study released by the American Medical Association, more than 60 percent of the doctors involved in the poll, declared that they would considerably limit their number of Medicare patients.

The physicians claim that the government decision is not fair, as their practices have several significant monthly expenses such as health insurance for their employees, electricity and technical updates.

Even though the cut was scheduled to take eeffect on July 1, the government decided on a two week extension period, in order to solve the reimbursement dispute.

Medicare is a US government administered social insurance program, which provides health care coverage for people over 65 years old or others who meet certain criteria. The system works through a rather simple process: Medicare pays for the treatment received by the patient, who can go any hospital or doctor that agrees to Medicare’s activity.

The system still demands a lot of work, as there are many people who do not know exactly what they need when it comes to their health issues and the medical plans for treatments do not make it any easier.