How to address Medicare's budget neutrality rule: AMA

The American Medical Association has issued strategy suggestions for updating the budget neutrality adjustments included in the annual Medicare physician payment schedule.

The AMA argues that the benchmark for when increases to the Medicare payment schedule must be offset should be increased to $100 million from the original $20 million included in the Omnibus Reconciliation Act of 1989.

Other reform suggestions listed in the June 7 report include linking inflation-based annual updates to the Medicare Economic Index, allowing for more alternative payment models and making the Merit-based Incentive Payment System more accessible.

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