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Medicare News

Medicare Posts Payments to Physicians, Hospitals for Common Treatments as Consumer Guide

November 21, 2006 – The Centers for Medicare & Medicaid Services has made another step forward in providing consumers with information on the cost of healthcare services, which is aimed at helping them make better healthcare decisions. The latest data online is the payment information for physician and hospital outpatient services.

 

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The release yesterday includes data for common services provided in physicians’ offices, as well as services performed in a hospital outpatient department. This information complements the inpatient hospital and ambulatory surgery center data already posted to the CMS website.

The information includes payment rates for over 70 physician services rendered in non-office settings as well as 19 services usually performed in a physician’s office.  The outpatient hospital payment data being released also will give information for commonly performed procedures.

President Bush has directed that more data be made available to all Americans as part of the administration’s commitment to make health care more affordable and accessible, according to CMS.  This directive was stated in a Presidential Executive Order, on August 22, 2006. 

Yesterday’s announcement is the third set of information allowing consumers to review payment data for different areas of the country. The data is by state and major markets.

As a first step in this initiative, on June 1 Medicare posted the costs it pays hospitals for 30 common elective procedures and other hospital admissions.  On August 21, CMS added charge and payment information for common procedures performed in ambulatory surgery centers (ASCs).

The latest CMS is posting payment information for common physicians' services, including anesthesia services, as well as services performed in a hospital outpatient department. Coupled with the inpatient hospital and ASC data already posted, this latest information will provide consumers with more comprehensive information about services performed in various provider settings.

The four physician files are as follows:

"Physician Payments:  72 Commonly Performed Services in a Non-Office Facility Setting" is two files which contain service volumes, charge, and Medicare payment data for physicians' services for a limited set of services, including anesthesia services, rendered in Medicare payment localities. These particular codes/services are directly related to the types of services which may be rendered in an inpatient hospital, outpatient hospital, or ASC, and correlate to most of the procedure codes already posted.

"Physician Payments:  19 Other Commonly Performed Services Provided in an Office Setting" contains similar service, charge, and Medicare payment data, but for physicians' services of high utilization which are commonly performed in a physician's office.

The fourth physician file contains a 1-page example of the comprehensive physician data.

Finally, the PDF document contains two simple examples/scenarios of how the transparency data may be used by a consumer.

Note Regarding Current Procedural Terminology (CPT) Codes Used in the Tables:  CPT only copyright 2006 American Medical Association. All rights reserved. Applicable Federal Acquisition Regulations System (FARS)/Defense Federal Acquisition Regulation Supplement (DFARS) Apply. CPT is a registered trademark of the American Medical Association.

The new information posted by CMS at www.cms.hhs.gov/HealthCareConInit/ will allow consumers and users of the data to compare the costs and procedures, which may vary depending upon the site of service, and to select the most appropriate setting for the delivery of high quality, efficient care.

“The new information on physicians and hospital outpatient departments adds to the information that people can use to make better decisions on their care,” said CMS Acting Administrator Leslie Norwalk, “In all areas of care -- hospitals, physicians, nursing homes, health plans, and prescription drugs -- we are supporting collaborative efforts that are providing unprecedented information to help people get the best quality care for the best price.”

Sample of Physician Information

Following information on physician service charges is for the nation but in the system on the Medicare site it is listed for each state and many major cities.

Breast biopsy through skin with sampling device

CPT 19103

 Allowed Services+

Avg Sub Charge+

Avg Allow Chrg+

Avg Payment+

79,494

819

286

226

Field Descriptions

  ● Allowed Services:  A count of the number of services performed for a procedure.

  ● Avg Sub Charge:  Submitted charges divided by allowed services.

  ● Avg Allow Chrg:  Average Medicare allowed charge divided by allowed services.  This includes deductibles and coinsurance amounts for which the beneficiary is responsible.

  ● Avg Payment:  Average Medicare payment divided by allowed services. This does not include deductibles and coinsurance amounts for which the beneficiary is responsible.

  ● Localities: Geographic areas designated for payment purposes. Medicare payment rates for physicians' services are adjusted in each locality by a geographic adjustment factor which reflects the relative costs of resources involved with furnishing such services in a locality compared to the national average of such costs. 

 

>> For more consumer healthcare cost comparisons – click here

Downloads Available

  ● Physician Payments:  72 Commonly Performed Services in a Non-Office Facility Setting Across all Specialties [Excel Zipped, 79KB]
  ● Physician Payments:  72 Commonly Performed Services in a Non-Office Facility Setting Across all Specialties - Continued [Excel Zipped, 88KB]
  ● Physician Payments:  19 Other Commonly Performed Services Provided in an Office Setting [Excel Zipped, 46KB]
  ● Physician Payments Example [Excel Zipped, 10MB]
  ● Transparency Initiative Scenarios [PDF, 16KB]

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