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|Report Supports Need to Adjust Doctor Medicare Reimbursements|
“The Medicare underpayments in
The anomaly in Medicare reimbursements involves a formula known as the Geographic Practice Cost Index (GPCI). In 1966, when the formula was initiated, counties were designated as either "rural" or "urban," with the expectation that those designations would be updated every few years. That never happened, and as a result, doctors in counties that have seen economic growth are being compensated at levels significantly lower than those in nearby counties.
The report concludes that the Medicare program “should use health sector data from the Bureau of Labor Statistics (BLS) to develop its indexes for calculating wage adjustments for hospitals and private practice health professionals”. The report also reaffirms the solution presented by Congressman Farr, which would update geographic designations using Metropolitan Statistical Area (MSA) data.
The study was sponsored by the Centers for Medicare and