Kaiser Daily Health Policy Report

Wednesday, March 26, 2003

Medicare

      Medicare premiums next year likely will increase 12.4% -- the largest increase in 11 years -- because Medicare spending "surged unexpectedly" last year, Richard Foster, chief actuary for Medicare, said March 25, the New York Times reports. In addition to the $7.30 monthly increase faced by Medicare beneficiaries, the program might decrease payments to physicians by 4.2% next year. The reduction in physician reimbursement for Medicare beneficiaries is likely to occur despite money set aside in the recently enacted fiscal fiscal year 2003 omnibus spending bill to avoid such cuts (Pear, New York Times, 3/26). That legislation, signed into law on February 20, includes a provision that provides $54 billion to increase Medicare reimbursement to physicians and hospitals over the next 10 years and a provision to eliminate a 4.4% reduction in Medicare physician reimbursement rates that was to go into effect March 1. In addition, the provision increases Medicare physician reimbursements by 1.6% and will cost the federal government between $1.5 billion and $2 billion through the end of FY 2003 (Kaiser Daily Health Policy Report, 2/21). However, CMS Administrator Tom Scully said the fee cut is offset by a "stunning 8% increase in the volume" of physician services performed last year for Medicare beneficiaries. Medicare, which provides coverage to 40 million U.S. residents, last year paid $45 billion in reimbursements, an increase of $3 billion, or 7%, even though the average fee for each service was reduced, the Times reports. Dr. Yank Coble, president of the American Medical Association, said, "Under the formula, physicians are penalized if services to Medicare patients grow more rapidly than the gross domestic product" because Medicare spending on physician care is likely to exceed established targets and trigger payment cuts in periods of slow economic growth. He adding that the "health care needs of America's seniors don't change with the ups and downs of the economy." Foster highlighted the following areas of increased spending last year:




≪このWindowを閉じる≫