Helping Or Hurting Medicare?
There are some extremely long and complicated answers to this question posted. Let’s hear directly from CMS Chief Actuary Richard Foster:
From the CMS report, page 9: “Over time, a sustained reduction in payment updates, based on productivity expectations that are difficult to attain, would cause Medicare payment rates to grow more slowly than, and in a way, that was unrelated to, the providers’ costs of furnishing services to beneficiaries. Thus, providers for whom Medicare constitutes a substantive portion of their business could find it difficult to remain profitable and absent legislative intervention, may end their participation in the program. Simulations by the Office of the Actuary suggest that roughly 20 percent of Part A providers would become unprofitable within the 10-year projection period as a result of the productivity improvements.”
Seems pretty clear.
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