Under current policy, Medicare reimburses for physician services according to a fee schedule that differentiates payment levels for physicians according to their experience. However, experience salaried physicians who have not previously billed for Medicare services are reimbursed as "new" physicians when they first begin treating those covered by Medicare. By examining experience differentials in physician fees and wages in other settings and the reimbursement practices of private insurers, this report provides evidence suggesting that the present Medicare fee schedule is likely to discourage new physicians from treating Medicare patients.
This report is part of the RAND Corporation Monograph report series. The monograph/report was a product of the RAND Corporation from 1993 to 2003. RAND monograph/reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.