Physicians would receive a 21.5% cut to their Medicare payments starting Jan. 1, 2010, under a proposed rule issued by the CMS. But in a major step to revise the way it pays physicians, the agency is also proposing to remove physician-administered drugs from the formula used to calculate Medicare’s physician fee schedule. The proposal to take drugs out of the formula won’t prevent the anticipated cut in 2010; however, physicians will experience fewer years of negative updates if it is implemented. The American Medical Association, which has been pushing for this measure for years, applauded the proposal. The sustainable growth rate formula ties Medicare physician payments to several factors, including changes in the economy. Congress may intervene, as it has in the past, to prevent the 21.5% cut.
Late News: CMS proposes to revamp Medicare drug payment rules
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