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March 2008

March 16, 2008

MedPAC report offers support for Medicare pay increase.

A report to Congress issued by the Medicare Payment Advisory Commission (MedPAC) states that the agency is concerned that repeated annual reductions in physician payment rates could threaten beneficiaries’ access to physician services. MedPAC has previously called for a 1.1 percent increase in physician Medicare reimbursement to replace the scheduled 10.6 percent cut. The report also states that the current payment system "undervalues primary care services and introduces other distorted incentives that encourage overuse of some services and underuse of others."
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Survey: Group practices begin limiting access in light of looming Medicare cuts.

A survey of more than 1,000 group practice professionals conducted by the Medical Group Management Association finds that many group practices across the United States have already taken measures in response to an uncertain Medicare reimbursement environment. In anticipation of a 10.6 percent reduction in Medicare payments scheduled to go into effect on July 1, nearly 24 percent or respondents stated that they had either begun limiting or not accepting new Medicare patients. Furthermore, 46 percent of respondents said they would have to stop accepting and/or limit the number of Medicare beneficiaries their practices treat if the cut proceeds as planned.

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Report compares state tort environments.

A report released by the not-for-profit Pacific Research Institute ranks the best and worst state tort systems in the United States. "U.S. Tort Liability Index: 2008 Report" valuated the tort laws of each state, in addition to taking into consideration tort costs and litigation risks. North Dakota was found to be tops in terms of low tort costs, but the report suggests that lack of strong tort reform laws could make that state a target for trial lawyers in the future. Conversely, Florida ranked the worst in terms of tort cost and litigation risk, but was determined to have some of the best tort laws in the United State due to recent reforms. States considered to have the best overall tort rules were Colorado, Texas, Ohio, Georgia, Indiana, Florida, and Michigan. States considered to have the worst were Pennsylvania, Illinois, Maryland, New York, Vermont, and Rhode Island.