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This Note describes a microcomputer model developed for the Congressional Research Service to simulate the effects of changing the way physicians are reimbursed for services provided to Medicare beneficiaries. The model allows the user to investigate the effects on Medicare expenditures, on providers, and on beneficiaries of replacing the current Medicare physician reimbursement system with a fee schedule. It presents some illustrative results, using data from two states, to compare the effects of a fee schedule based on current allowed charges and one based on estimates of resource costs.

This report is part of the RAND Corporation note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

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