New Bill Reshapes Physician Reimbursements

Earlier this week, the US Senate passed a bipartisan bill that restructures reimbursements to physicians for treating Medicare patients.

As of Wednesday, the bill prevents a 21% decrease in Medicare payments. The new formula for payment restructuring is due to rising healthcare costs that have exceeded overall economic growth, which the old reimbursement methods were tied to.
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According to the authors of the bill, the new payment system will reimburse physicians based on the quality of care they offer their Medicare patients, not the number of office visits they receive.

Higher prescription drug premiums for higher-income Medicare beneficiaries will account for $35 billion for the program starting in 2018, while $37 billion will be attributed to decreasing reimbursements to healthcare providers and hospitals, and $141 billion will be added to the federal deficit.

-Michelle Canales Butcher

Reference:

The Associated Press. Finally, congress Oks bill reshaping Medicare doctors’ fees. April 15, 2015. http://news.yahoo.com/finally-congress-oks-bill-reshaping-medicare-doctors-fees-073608696--finance.html. Accessed April 16, 2015.