Medicare Reimbursement Information III

Today, we will focus on hospital care outside of the traditional Inpatient hospital care setting. Again, this information is culled from MedPAC reports. Outpatient Hospital Services Outpatient hospital care, from injections to complex procedures, accounted for $19 billion of total Medicare spending in 2007 Originally, outpatient reimbursement was cost based and copayments amounted to about…

Medicare Reimbursement Information II

I will continue reviewing some Medicare reimbursement information as described in a variety of MedPAC reports. Medicare Advantage Medicare Advantage is a program where Medicare beneficiaries can receive private heath insurance, partially or fully funded by CMS.  The health insurance must provide coverage at least as generous as Medicare Parts A and B. Private health…

Medicare Reimbursement Information I

This week, I will be discussing Medicare Reimbursement in detail.  The Medicare Payment Advisory Commission (MedPAC) has a high-quality series of reports analyzing Medicare’s reimbursement system. Findings from these reports includes: Physician Services In 2006, about 569,000 physicians billed Medicare. In 2007, Medicare paid $60 billion for physician services. All physician services are reported to…

CBO Health Care Expenditure Forecasts

The Congressional Budget Office (CBO) periodically releases its 75-year health care spending projections. Current projections forecast the following health care spending levels: Total spending on health care would rise from 16% of GDP in 2007 to 25% in 2025, 37% in 2050 and 49% in 2082. Federal spending on Medicare (net of beneficiaries premiums) and…

Why is Medical Care so expensive?

Why does Medicare spend $7,500 for patients in El Paso, Texas but spends $15,000 for patients in McAllen, Texas?  It McAllen richer? Does McAllen receive better care?  Are patients sicker in McAllen?   “Come on” the general surgeon finally said. “We all know these arguments are bullshit.  There is overutilization here pure and simple.”  Doctors, he said,…

Medicare trust fund to be tapped out by 2017

Bond Markets seem to be concerned over the escalating level of U.S. Government debt.  Yields rose during the latest $14 billion auction of U.S. 30-year Treasury Bonds.  This graph shows an ominous budget deficit trend as well.  There seems to be good reason for this.   American’s stimulus plan and entitlement programs are putting an…