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Medicare Reimbursement


The AAFP calls for a realignment of Medicare reimbursement to reflect more equitable reimbursement for services provided by family physicians.

With regard to reimbursement for physicians' services under Medicare, the AAFP:

(a) Supports Medicare payment for physician services according to a Resource-Based Relative Value Scale (RBRVS),

(b) Continues to oppose mandatory assignment for physicians under the Medicare program,

(c) Opposes the (limiting charge) program that unfairly limits the reimbursement of nonparticipating physicians,

(d) Supports the need for Medicare beneficiaries to receive clear and understandable reports about the payments made, or not made, on their behalf, while avoiding potentially negative phrases, such as "not medically necessary,"

(e) Supports the use of a single conversion factor for all physician services under the Medicare Fee Schedule,

(f) Opposes expenditure targets, including the Sustainable Growth Rate, that are linked to the Gross Domestic Product, in favor of a system based on a fair representation of physicians' costs of delivering care,

(g) Supports practice expense relative value units (RVUs) that are based on the actual resources, both direct and indirect, which physicians use to provide services and that are adjusted in a timely and understandable manner,

(h) Supports work RVUs which appropriately value evaluation and management services relative to procedural services, and

(i) Supports the elimination of all geographic adjustment factors from the Medicare Fee Schedule except for those designed to achieve a specific public policy goal (e.g., to encourage physicians to practice in underserved areas). (1973) (2002)