tci Part B Insider - 2005 Issue 2

Physician Notes: Physician Pay Formula Is Broke - Will Congress Fix It?

Don't hold your breath, say Washington insiders To physicians, the danger is about as clear and present as it could possibly get: Unless something changes sharply by January 2006, your reimbursement will dive off a cliff. Because Congress has boosted physician pay in recent years without fixing the underlying formula which normally determines docs' pay rates, observers expect Medicare to slash physician pay by roughly 5 percent each year from 2006 to 2012. The only hope is for Congress to adjust the formula before then. But don't expect Congress to move quickly to solve this nightmare, Capitol Hill sources...

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