Sources of the Growth in Medicare Physician Expenditures

Publisher Website
Google Scholar
Abstract
EXPENDITURES for physician services under Part B of Medicare have been rising at rates far exceeding inflation. In the 4-year period from 1985 through 1988, Medicare-allowed charges increased from $19 billion to $27 billion, an annual growth rate of 12.3%. The factors contributing to the high rate of expenditure growth include increases in the number and average age of enrollees, increases in physician fees, and increases in the number and intensity of services. During the 1980s, enrollment growth and other demographic changes consistently accounted for about 2% of annual Part B growth.1 From 1980 through 1984, increases in physician fees averaged about 9% per year, while the growth in volume per enrollee was about 7% per year.2 Congress imposed a fee freeze from July 1984 through April 1986 for all physicians and extended the freeze until January 1987 for nonparticipating physicians. During the period of this policy of

This publication has 0 references indexed in Scilit: