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Do these guys know why they're applauding?

H W Long1

  • 1Freeman School of Business, Tulane University, New Orleans, LA.

Physician Executive
|February 8, 1990
PubMed
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The Omnibus Budget Reconciliation Act of 1989 mandates Medicare physician fee schedules starting in 1992. This legislation aims to control costs for services under Medicare Part B.

Area of Science:

  • Health Policy
  • Medical Economics

Background:

  • The Omnibus Budget Reconciliation Act of 1989 introduced significant changes to Medicare.
  • Previous mechanisms for controlling healthcare spending were in place.

Purpose of the Study:

  • To analyze the legislative mandates within Title IV, Section 6102 of the Act.
  • To understand the implementation of Medicare physician fee schedules and balance billing limits.

Main Methods:

  • Review of legislative text from the Omnibus Budget Reconciliation Act of 1989.
  • Analysis of provisions related to physician payment under Medicare Part B.

Main Results:

  • Mandates the Health Care Financing Administration (HCFA) to establish physician fee schedules for Medicare Part B services.

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  • Phased implementation of fee schedules from January 1, 1992, over four years.
  • Establishes balance billing limits and Volume Performance Rates of Increase.

    • Conclusions:

    • The Act represents a major regulatory shift in physician payment under Medicare.
    • The legislation aims to control physician fees and healthcare expenditures.