10.6.3: Doc Fix

Enact a permanent "doc fix" and make physician pricing fully transparent.

Other Information:

Enacting a permanent "doc fix" and making physician pricing fully transparent. Beginning immediately, a permanent "doc fix" is implemented using any Medicare savings from legislation, including savings from this proposal. From this point forward, physician payments are adjusted for inflation, measured by the CPI (not the Medical CPI). However, the law is changed to permit balanced billing in combination with a price disclosure requirement for Medicare physicians' services. Thus, for traditional Medicare FFS during the transition, the government determines Medicare reimbursement, while physicians determine patient fees. This change will encourage doctors who otherwise might drop out of Medicare to continue to treat Medicare patients. Moreover, the required transparency in physician fees guarantees price competition in physician services, thus helping to lower Medicare costs. Allowing new retirees to keep their existing plans. Surveys show that the vast majority of working Americans are satisfied with and, if possible, want to keep their existing health plans. The Heritage plan expands the opportunities for Americans to keep their existing plans into retirement. Even before the five-year transition to a full premium-support program, Medicare provides a risk-adjusted defined contribution for any retirees who want to remain in their pre-existing health plan, including employer-based coverage. Subsidies will also be adjusted by the new income rules.

Stakeholder(s):

• Doctors


• Physicians

Indicator(s):

Indicator:1

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