MedPAC recommends doctor pay boost

The group also voted in favor of more federal oversight of diagnostic imaging tests under the program.

By David Glendinning, AMNews staff. Jan. 31, 2005.

Washington -- Physicians have another ally this year in the fight to ensure adequate Medicare reimbursements in 2006.

The Medicare Payment Advisory Commission adopted a recommendation at its January meeting calling on Congress to raise the base rate for doctors by 2.7% next year. Without action by lawmakers this session, the payments are expected to drop by about 5% from their current level.

MedPAC's decision indicates that the panel, which counsels Congress on how to set Medicare rates, thinks doctors will not receive adequate payment under current law. The recommended percentage boost corresponds to a projected increase in the costs of providing medical services next year minus a small percentage for a projected rise in physician productivity.

The American Medical Association hailed the announcement as the first step toward achieving one of the group's top legislative priorities for the year. Annual recommendations from the panel, which appear in MedPAC's March report, are not binding on Congress but often serve as the starting point for legislative debate.

"Unless Medicare payments keep up with the cost of providing care, there is a real concern that some physicians will be forced to stop taking new Medicare patients and access to care will suffer," stated AMA President John C. Nelson, MD, MPH. "If enacted by Congress, this new MedPAC recommendation will help physicians continue to treat Medicare patients."

MedPAC analysts reported to the commission that the level of compensation doctors have been receiving has not yet caused patient access problems on a large scale. A "small but consistent share" of beneficiaries have some problems getting to see a physician, but these seniors usually are new to fee-for-service Medicare or have recently moved to a different part of the country.