tci Medicare Compliance & Reimbursement - 2006 Issue 28

MEDICARE: Look For More Payment System Shake-Ups And P4P Adoption

New expenditure data could spark further payment reforms.Although revised Part D spending projections are surprisingly $34 billion lower than the projections in President Bush's budget, estimates for Part A and Part B expenditures are considerably higher. Bottom line: Providers need to prepare themselves now for more scrutiny of hospital and physician services payments.The Centers for Medicare & Medicaid Services (CMS) attributes the decreased spending projections for Part D mostly to "strong competition." CMS projects Part D expenditures to be $110 billion lower over five years--2006 through 2010--than estimates in last year's Mid-Session Review, according to a...

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