Home

  • Home
    • » e-Newsletters

Physicians face 10% reduction in Medicare payments in 2008

Physician Practice Advisor, January 10, 2007

After narrowly escaping a cut to Medicare payments for 2007, physicians will now face a potential 10% cut in Medicare payments in 2008, according to estimates released by the Congressional Budget Office (CBO).

Congress eliminated a 5% reduction in payments when it passed the "Tax Relief and Health Care Improvement Act of 2006" in December, freezing Medicare payment rates for the second year in a row. However, payment rates will revert to prior-law levels in 2008, which the CBO estimates will equal a 10% reduction in payments.

The law also includes a "Physician Assistance Quality Initiative Fund," which places $1.35 billion under the authority of the Department of Health and Human Services secretary to help offset the cost of the decrease in Medicare physician reimbursements in 2008.

For more information about the CBO report, click here.

Most Popular