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Physicians, Congress, and Medicare Fees

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Abstract:

Physicians' fees under Medicare are updated by regulation annually, based on a formula called the Sustainable Growth Rate (SGR). Since 2003 Congress has reversed impending cuts to fees, and repeatedly physician groups have threatened to leave Medicare. Congress has always swept in at the last moment to override the rate cuts, most dramatically, in mid-2008 with Senator Kennedy's surprise appearance in the Senate. Thus, Congress now rewrites payment policy every year, and the SGR is fast becoming a theoretical payment rate. How did the SGR and Medicare physician payment policy turn into a cliff-hanger as it did in the summer of 2008? Examining the policy history of the SGR shows that physicians supported the SGR prior to 2003, and that the present crisis in physician payment can partly be blamed on physician groups, that are culpable for the failure of cost containment. Physicians resisted a stronger federal role in cost containment and promised to comply (but did not embrace) evidence-based controls on medical practice. Future policy changes should consider physician needs alongside broader cost containment and quality goals.

Most Common Document Word Stems:

physician (178), payment (154), medicar (117), updat (64), fee (62), servic (58), increas (54), polici (50), expenditur (49), congress (48), sgr (44), cut (39), system (38), year (38), volum (33), health (33), cost (33), target (32), 2002 (31), group (31), legisl (27),

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health policy, Medicare, Congress, physicians, public policy, health care
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Name: APSA 2008 Annual Meeting
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Laugesen, Miriam. "Physicians, Congress, and Medicare Fees" Paper presented at the annual meeting of the APSA 2008 Annual Meeting, Hynes Convention Center, Boston, Massachusetts, Aug 28, 2008 <Not Available>. 2009-05-23 <http://www.allacademic.com/meta/p281083_index.html>

APA Citation:

Laugesen, M. J. , 2008-08-28 "Physicians, Congress, and Medicare Fees" Paper presented at the annual meeting of the APSA 2008 Annual Meeting, Hynes Convention Center, Boston, Massachusetts Online <APPLICATION/PDF>. 2009-05-23 from http://www.allacademic.com/meta/p281083_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Physicians' fees under Medicare are updated by regulation annually, based on a formula called the Sustainable Growth Rate (SGR). Since 2003 Congress has reversed impending cuts to fees, and repeatedly physician groups have threatened to leave Medicare. Congress has always swept in at the last moment to override the rate cuts, most dramatically, in mid-2008 with Senator Kennedy's surprise appearance in the Senate. Thus, Congress now rewrites payment policy every year, and the SGR is fast becoming a theoretical payment rate. How did the SGR and Medicare physician payment policy turn into a cliff-hanger as it did in the summer of 2008? Examining the policy history of the SGR shows that physicians supported the SGR prior to 2003, and that the present crisis in physician payment can partly be blamed on physician groups, that are culpable for the failure of cost containment. Physicians resisted a stronger federal role in cost containment and promised to comply (but did not embrace) evidence-based controls on medical practice. Future policy changes should consider physician needs alongside broader cost containment and quality goals.

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Associated Document Available Political Research Online
Associated Document Available APSA 2008 Annual Meeting

Document Type: application/pdf
Page count: 27
Word count: 7657
Text sample:
PHYSICIANS CONGRESS AND MEDICARE FEES Miriam J. Laugesen Ph.D. University of California Los Angeles Assistant Professor Department of Health Services UCLA School of Public Health 31-293A Center for Health Sciences Box 951772 Los Angeles CA 90095-1772 E-mail: Laugesen@ucla.edu Prepared for delivery at the 2008 Annual Meeting of the American Political Science Association August 28-31 2008." Acknowledgements: Tom Rice Dana Goldman Jerry Kominski Melinda Beeuwkes Buntin and Eric Patashnik provided helpful comments on an earlier draft. Kevin Clements at the
Medicare services? Milbank Q 68: 295-319. Rovner J. 2006.Congress Doctors at Odds over Medicare Payments. Morning Edition ed. USA Washington DC: National Public Radio Scully T.A. 2003.Capitol Hill Hearing Testimony. In Senate Appropriations Committee Subcommittee on Labor Health and Human Services and Education. Washington D.C.: Federal Document Clearing House. United States Government Accountability Office. 2004.Medicare Physician Payments: Concerns about Spending Target System Prompt Interest in Considering Reforms. In Report to Congressional Committees. Washington DC: United States Government Accountability Office.


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