Medicare changes in the budget bill

The 1997 federal budget bill contains several significant changes for the Medicare program. Of these changes, revamping of the Medicare capitation program probably has the potential for the greatest impact. This article explains how capitation payments will change under the new system. It also details key changes in Medicare payments to physicians and payments to hospital outpatient departments, rehabilitation hospitals, home healthcare providers, and nursing homes. Finally, several new benefits included in the budget bill are described.