In its annual report to Congress, the Medicare Payment Advisory Commission (MedPAC) has recommended a 1% payment increase for physicians in 2011.
The Commission took three factors into account in making the modest recommendation:
- Medicare's payment systems should encourage efficiency in providing Medicare services
- The impact on beneficiaries' out-of-pocket spending liability
- The Medicare program is facing fiscal sustainability problems
"Our analysis of the most recently available data finds that, overall, Medicare payments for physician services are adequate. Access, supply, quality, and volume measures suggest that most Medicare beneficiaries are able to obtain physician services with few or no problems," the report said.
The recommendation would increase federal program spending by more than $2 billion in the first year and by more than $10 billion over five years, MedPAC said. In addition, implementing any positive update for 2011 would substantially increase Medicare spending relative to current law, because current law under the sustainable growth rate (SGR) system calls for negative updates from 2010 through at least 2015.
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