Saturday, June 5, 2010

Drivers of MD reimbursement cuts

Congress may soon pass a bill that cuts physician reimbursement from Medicare by as much as 21%

What's driving the cuts?

* High federal budget deficit is putting pressure on federal government to cut MD reimbursement (Remember: Government is THE largest healthcare payer)
* Inclination of state governments to regulate (limit) insurance premium increases on individuals will likely drive lower payment by state government to hospitals and doctors
* Private insurers will likely renegotiate contracts with providers to cut reimbursement rates if both federal and state governments cut MD reimbursement rates

Are there other drivers?

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