tci Part B Insider - 2005 Issue 12

Expense Indexes May Not Reflect Your Real Costs, Says GAO

If you are frustrated by the geographic practice cost indices (GPCIs), a March 11 Government Accountability Office report won't do much to help.The three GPCIs - practice expense, physician work and the malpractice expense - lower fees for private medical practices in areas where costs are below the national average.According to "Geographic Adjustment of Medicare Fees" (GAO-05-119), the GPCIs are not truly effective because the wage data used in the work and practice expense GPCIs are not current, and the data used in the malpractice GPCI are incomplete, the report reads.Also: Although Medicare revenue affects 25...

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