The American Medical Association, anticipating a March report by the Medicare Payment Advisory Commission, urged Congress to abandon the sustainable growth rate formula now used to set annual changes to Medicare physician reimbursement. In its March report, MedPAC will present two proposals for addressing flaws in the formula. The first suggests payment reforms, such as pay-for-performance, aimed at making Medicare a more value-oriented purchaser of care. The second approach would be to apply expenditure targets, now used under the sustainable growth rate formula for physicians, to all providers, including hospitals, and structure rewards and penalties based on geographic areas. In a statement, AMA President Cecil Wilson said physician payment updates instead should be determined using the same approach used for other providers -- based on the cost of providing care. -- by Jennifer Lubell
AMA attacks Medicare pay formula
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.