MedPAC Testimony Addresses Physician Payment

On May 10, 2007, Glenn M. Hackborth, J.D., Chairman of the Medicare Payment Advisory Committee (MedPAC) presented testimony before the Subcommittee on Health of the U.S. House of Representatives' Committee on Ways and Means concerning options to improve Medicare?s payments to physicians.

The presentation included charts showing an increase in spending for physician services from 1996 to 2006, as well as increases in Medicare Part B premiums. Next, Hackborth discussed "misvalued services," or those that are considered overvalued and subsequently overprovided, as well as some services that may be undervalued and threatening access to care.

Among topics included in the discussion of options to improve payment were ensuring accurate prices, measuring resource use and providing feedback, encouraging coordination of care and the use of care management processes, promoting the use of primary care, bundling to reduce overuse, linking payment to quality, encouraging the use of comparative-effectiveness information and using standards to ensure quality.

A copy of the entire report is available at http://www.medpac.gov/.