Medicare spending on physician services dropped in 2020
By HME News Staff
Updated 11:42 AM CST, Tue December 7, 2021
CHICAGO – Medicare spending on physician services fell an estimated $13.9 billion, or 14% below expected levels, in 2020, according to a new report from the American Medical Association. Despite a mid-year rebound after sharp declines early in the year, spending during 2020 never recovered to pre-pandemic levels, the report found. “Physicians experienced a significant and sustained drop in Medicare revenue during the first 10 months of the pandemic,” said Gerald Harmon, MD, president of the AMA. “Medicare practices that have not buckled under financial strain continue to be stretched clinically, emotionally and fiscally as the pandemic persists. Yes, physicians face an array of planned cuts that would reduce Medicare physician payments by nearly 10% for 2022. The AMA is strongly urging Congress to avert the planned payment cuts.” The AMA based the report on an analysis of Medicare claims data exclusive to physician services. Other findings: Medicare spending on physician services for 2020 declined regardless of service type, setting or specialty, and state or region; and spending on telehealth increased dramatically in 2020 but was concentrated in a handful of service categories like mental health.
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