Reaction to AMA:Congress P4P Agreement

The Blue Cross Association posted some reactions from organized medicine to the recent agrement by the AMA to develop performance measures. See http://bcbshealthissues.com.

AMA AND CONGRESS SIGN P4P AGREEMENT

The American Medical Association has signed pact with Congress "agreeing" as follows:

*The parties will develop a total of 140 quality measures covering 34 clinical areas.

*Doctors will voluntarily report on at least 3 to 5 quality measures per physician by 2007.

*Doctors should receive additional reimbursement to cover administrative costs.

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DEFICIT REDUCTION ACT OF 2005:

DEFICIT REDUCTION ACT OF 2005:
SUMMARY OF MEDICARE REIMBURSEMENT CHANGES

President Bush signed the Deficit Reduction Act of 2005 (DRA 2005) on February 8, 2006. DRA 2005 contained numerous budget cutting provisions impacting Medicare and Medicaid reimbursement programs. Following is a description of the most significant.

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MORE DRA 2005 REIMBURSEMENT NEWS

AMBULATORY SURGERY CENTER, GAIN SHARING DEMONSTRATION PROJECTS, THERAPY SERVICE, AND SPECIALTY HOSPITAL REFERRAL PROHIBITIONS


As reported last week, the House of Representatives has passed the Deficit Reduction Act of 2005 (DRA 2005), which is expected to be signed by President Bush in the very near future. When ultimately passed, we will provide a more detailed explanation of the critical issues, but the following are additional reimbursement issues impacted by DRA 2005:

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Deficit Reduction Act -- U.S. House Of Representatives Approves But Medicare Physician Increases Limited

Physicians had hoped for budget neutrality in the Deficit Reduction Act of 2005, i.e., the "zero update," expecting the 4.4% decrease implemented by the current Medicare Sustainable Growth Rate rules to be eliminated. The general reimbursement reduction mandated for 2006 was eliminated by DRA 2005, but DRA 2005 requires that the cost of the physician reimbursement increases be offset by future reductions, meaning that DRA 2005 is simply postponing these reimbursement decreases until future years.

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