Medicare: Payments to Physicians (CRS Report for Congress)
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| Release Date |
Jan. 28, 1998 |
| Report Number |
98-75 |
| Report Type |
Report |
| Authors |
Jennifer O'Sullivan, Education and Public Welfare Division |
| Source Agency |
Congressional Research Service |
Summary:
Many physicians have evidenced concern regarding the scope of recent changes.Changes in calculation of the conversion factor coupled with changes in practiceexpense calculations will have the greatest impact on payments for surgical services.For example, the Health Care Financing Administration (HCFA, the agency thatadministers Medicare) has estimated that Medicare payments in 1998 will drop byover 5% for cardiac surgeons, thoracic surgeons, neurosurgeons andophthalmologists. Conversely, the payments are expected to increase by over 5% forinternists and family practice physicians. The reductions in payments for surgicalservices are expected to hrther declme as a new methodology for paying for practiceexpenses is implemented over the 1999-2002 period.Some observers have suggested that as Medicare places additional constraintson spending, access to care may be impeded. To date, this has not been the case. Itshould be noted that the Medicare program is not alone in attempting to constraincost increases. Private insurers and employers are also attempting to control spendingthrough various approaches including an increased emphasis on managed care.
