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Tuesday, 7th July 2009

Physician Payment Reform in Medicare In Brief

Physician Payment Reform in Medicare In Brief
Source: AARP Policy & Research

Changing the way physicians are paid is a critical piece of health care reform. Physician payment policies should align with—and reinforce—the goals of a health care system that works for patients. Physician payment policies should create incentives so that payers and patients receive value for money spent.

Critics of the current system say that Medicare’s fee-for-service physician payment method fails to promote the delivery of efficient or effective care. They argue that the system does not reflect the value or effectiveness of services provided to patients; the system values new high-technology services over office visits and results in lower payments to primary care physicians; and paying for services separately leads to growth in volume and spending.

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