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.

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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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