tci Part B Insider - 2005 Issue 28

REIMBURSEMENT: CMS Projects Steep Cut, But Johnson Proposes Increase Instead

89 Senators ask CMS to take drugs out of physician pay formulaThe Centers for Medicare & Medicaid Services issued a grim reminder of what will happen if Congress doesn't rescue physicians, and soon. CMS confirmed that physicians face an unthinkable 4.3 percent cut in 2006, and similar cuts from 2007 to 2012. The Sustainable Growth Rate (SGR) formula, which updates physician payments every year based on the volume of physician services and the growth of the economy as a whole, mandated the cuts. Help may be on the way. Rep. Nancy Johnson (R-CT) introduced the long-awaited Medicare Value-Based...

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