MedPAC Recommends 2.8% Increase to Physician Payments

The Medicare Payment Advisory Committee (MedPAC) submitted its recommendation in light of the recent FY 2007 budget proposal from the Bush administration, calling for a 2.8% increase in physician Medicare payments. While the president's budget did not specifically address physician reimbursement, it does call for cuts to hospitals, nursing homes and home health providers. MedPAC's report was critical of the calculation of Relative Value Units, or RVUs, claiming national specialty societies have caused increases in RVUs for specialty care, in effect decreasing those for primary care. Without some form of congressional action, CMS will implement the mandated, scheduled cuts to physician payments over the next nine years totaling 34%. The AMC/NOMA continues to support and actively advocate for a permanent restructuring of the flawed SGR formula used to figure reimbursements, and believes only this will preserve all patients rights and access to quality healthcare.