CMS proposed rule would increase physician reimbursement

Medicare payments to physicians would increase for 2004 under a proposed rule introduced by the Centers for Medicare and Medicaid Services. The CMS expects to pay about $48.7 billion to more than 900,000 physicians during 2004, up from the $48 billion paid out this year, according to a press release from the CMS.

Federal legislation passed after the published physician fee schedule would supersede the CMS rule, according to CMS administrator Tom Scully. The House Medicare reform bill specifies an update of at least 1.5% in 2004 and 2005, while the Senate bill includes a provision to prevent reductions in payments for 2004 and 2005.

The CMS proposed rule contains a provision to revise the Medicare Economic Index, which measures inflation in physician practice costs and general wage levels. The change is expected to address concerns physicians have about rising professional liability costs, according to the CMS press release. The CMS will also revise the geographic practice costs used in the malpractice component of the fee schedule.

Comments on the rule will be accepted until Oct. 7; a final rule will be published after that date.