Wow – I finally understand the SGR mess

2 Jul
2009

I always wondered why the SGR formula accelerated so quickly. Now I understand.

Medicare May Shuffle the Deck on Doctor Payments

Most of the money that Medicare pays physicians is for doctor visits, medical procedures and the like. But Medicare also pays physicians directly for drugs that are administered at doctors’ offices. Today, the agency that runs Medicare said it wanted to move the payments for those drugs out of the bucket of money allotted to physician payments, and into a different bucket.

The AMA has been pushing for this shift for years, because the cost of physician-administered drugs (which include expensive new cancer drugs, for example) has risen faster than the cost of doctors’ services.

But beyond making the a powerful lobby happy, the shift could make it politically easier for Congress to wade in, get rid of SGR and replace it with a new system, as many have called for.

If those drug costs are no longer included in the overall cost of payments to physicians, then Medicare’s total cost of paying physicians could fall by $87.5 billion over the next decade, according to a CBO estimate cited today by The Hill.

That would make any fix to SGR a bit easier to swallow — even if didn’t reduce Medicare’s overall spending.

I hope that helps others.

Related posts:

  1. Primary care payment – is win-win possible?
  2. Universal health care will require fair pay for primary care
  3. Finding enough primary care
  4. Could primary care actually win?
  5. Time – what the suits do not understand

Related posts brought to you by Yet Another Related Posts Plugin.

2 Responses to Wow – I finally understand the SGR mess

Avatar

Web Media Daily – Thurs. July 2, 2009 | Reinventing Yourself...

July 2nd, 2009 at 7:31 am

[...] Wow – I finally understand the SGR mess …DB’s Medical Rants [...]

Avatar

Phillip Madonia

July 18th, 2009 at 3:59 pm

What does SGR stand for?

Comment Form