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Fixing physician payment formula presents huge, expensive challenge for Congress.(government news)

It doesn't matter whether you're Democrat or Republican, liberal, conservative, or middle-of-the-road. Everyone on Capitol Hill agrees on one thing: the healthcare issue that dwarfs all others in the 110th Congress is how to fix the Medicare formula for setting physician payments.

Since 1998, Medicare has made annual adjustments to the physician fee schedule using the so-called Sustainable Growth Rate methodology. The SGR formula has two main factors: an overall spending target for Part B services, and an adjustment to the physician component of Part B to reflect differences between actual spending and the spending target-upward if spending is below the target, downward if ...

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