Third Update to the Geographic Practice Cost Index. Task Order 0038

摘要

This report updates the geographic adjusters used in adjusting Medicare physicianpayments for area cost difference among the 89 Medicare fee schedule geographic areas in providing physician services. By law each service under the Medicare physician fee schedule geographic areas in providing physician services. By law each service under the Medicare physician fee schedules has three components: physician work, practice expenses, and malpractice. There is a uniform national relative value for each component of each service. The law requires that payments vary among areas to the extent that the resource costs of providing the services vary as measured by the geographic practice cost index (GPC). There is a separate GPCI for each area for each component. The GPCIs are based on proxy data. The work GPCI is based on census data on earning of highly educated professionals. The practice expense GPCIs are based on census data on wages of the types of employees typically working in physicians' offices and HUD data on rents. The malpractice GPCIs are based on malpractice premium data. The law requires the GPCIs to be updated every 3 years. This is the third update since the inception of the fee schedule in 1992.