The future of Medicare Volume Performance Standards.
A policy of Medicare Volume Performance Standards (MVPS) was established to control the rate of growth in Medicare physician spending. The standards control spending growth by lowering fee updates when spending exceeds a preset standard, or increasing updates when spending is below the standard. Separate standards are established for surgical and nonsurgical services. This paper examines the policy's weaknesses and proposes refinements that would enhance the equity of MVPS rewards and penalties, and therefore, the policy's long-term viability. Specifically, we suggest that MVPS policy permit differentials in standards across areas when utilization rates vary geographically and for some types of services when volume growth differs significantly.
Holahan
J
J
Health Policy Center, Urban Institute, Washington, DC 20037.
Zuckerman
S
S
D004470:Economics, Medical; D017598:Efficiency, Organizational / Q000706:statistics & numerical data; D005245:Fee Schedules / Q000331:legislation & jurisprudence* / Q000639:trends; D005102:Health Expenditures / Q000331:legislation & jurisprudence* / Q000639:trends; D006291:Health Policy; D006801:Humans; D016345:Medicare Part B / Q000706:statistics & numerical data* / Q000639:trends; D008511:Medicine / Q000706:statistics & numerical data; D012052:Reimbursement, Incentive; D015895:Relative Value Scales; D013038:Specialization; D014481:United States