On August 7, 2001, U.S. Senate Minority Leader Trent Lott, R-Miss., sent a letter to HHS Secretary Tommy Thompson calling for an end to the American Medical Association’s (AMA) monopoly copyright on CPT (Current Procedural Terminology) codes that doctors are required to use to bill Medicare and Medicaid.
Sen. Lott needs everyone’s support in his effort to cut health costs by pulling the rug out from under the AMA’s monopoly on these codes. While the issue is complex, many doctors will tell you that the AMA’s stranglehold on government billing has been a major cause of the fear and intimidation in which doctors are now forced to practice medicine. Let’s look at some of the facts:
- According to Sen. Lott, the AMA makes big money on the sale of CPT coding materials. The AMA admits on its Web site that it makes more money on publishing than from member dues – to the tune of about $133 million in non-dues revenue, including sales of those expensive CPT code books.
- The paperback “CPT 2002 Standard Edition” sells for $49.95, a steep price for a paperback.
- Most doctors take care of Medicare patients and accept some miniscule government payment for it. Medicare law forces them to use the AMA’s copyrighted CPT (Current Procedural Terminology) coding materials.
- By searching through court records, The Association of American Physicians and Surgeons (AAPS) obtained a copy of a secret AMA/HCFA contract.
- In 1997, the AMA’s then-president, Thomas Reardon, finally admitted to the secret contract when questioned at a meeting. The AMA apparently had never informed its members or physicians at large – about the details of its secret pact.
- A three-judge federal panel in the 9th Circuit has already ruled that the AMA misused its copyright.
- AMA membership has decreased in recent years to about 292,000 members.
- The AMA therefore no longer represents even a majority of the approximately 750,000 American physicians.
- According to AMA reports, many AMA officers and employees draw six-figure salaries.
Elimination of this AMA monopoly will do more to protect patients than any version of the Patients’ Bill of Rights law. We only hope that Sen. Lott’s motivation is indeed protection of patients’ rights, not political manipulation to curb the AMA’s donations to the Democratic party, and that he’ll see this all the way through.
Patients and physicians need to take back medicine from this moneymaking machine of AMA-generated regulation. While the AMA, in its own words, “is a successful business entity,” medical practice must remain an ethical profession focused on providing quality care and value to patients – not extracting multi-million dollar publishing revenues and fees from doctors to pay big salaries to AMA honchos.
Those concerned may e-mail or call Sen. Lott to tell him to stick with this investigation. This would help a Lott! Please note:
- The AMA is not the unanimous voice for diverse physicians.
- The AMA shouldn’t have a government monopoly to make tens of millions of dollars bilking doctors, who must then pass along the costs to patients.
- The CPT codes should be free to users, such as patients and physicians – just like IRS forms, or any other information required to obey the law.
Phone Sen. Lott’s D.C. office: (202) 224-6253
Fax Sen. Lott’s D.C. office: (202) 224-2262
