tci Medicare Compliance & Reimbursement - 2007 Issue 5

PART B: Medicare Part B Saves Big--But For Whom?

Legislative effect on quality of care is unclear.Physicians may have benefited from Part B drug payments more than Medicare's enrollees, a new report claims.The Medicare Payment Advisory Commission (MedPAC) recently released the second of two Congressionally mandated reports on the "Impact of Changes in Medicare Payments for Part B Drugs." The MedPAC report makes this startling disclosure: "Physicians responded to the changes by cutting costs and increasing efficiency (particularly with respect to drug purchasing activities), finding new sources of revenue (e.g., imaging), and selecting more profitable patients." While increasing efficiency and finding new revenue...

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