CMS proposes raise in physician pay for 2005

An across-the-board 1.5% increase in Medicare payments to physicians in 2005 was proposed this week by the Centers for Medicare & Medicaid Services. The proposed increase is part of the Physician Fee Schedule Rule for 2005, which was released by the CMS on Tuesday.

In addition to the fee increase, CMS is seeking comments on a proposed rule to focus Medicare more on disease prevention and management, in contrast to its current focus on disease treatment, said Health and Human Services Secretary Tommy Thompson in a press release from the CMS.

“Total Medicare spending for more than 875,000 physicians and other healthcare professionals will increase by more than 4% from a projected $52.7 billion in 2004 to a projected $55 billion in 2005,” the CMS press release said.

Further steps the CMS is taking to improve access to health care include creating a new incentive payment to physicians practicing in areas where practitioners are scarce. Physicians would qualify for additional payments of 5% when furnishing services to beneficiaries in areas with the lowest 20% of physician-to-beneficiary ratios, according to the press release.