The debate over Medicare cuts is heating up. Recently, the president announced his budget cuts of nearly $70 billion for Medicare spending over the next 5 years. The impetus comes from the notion that current Medicare spending is unsustainable. For those who are ardent supporters of this reform this thing was long overdue.
According to the Economic and Budget Issue Brief, Part B of Medicare would cost the taxpayers about $158 billion in the year 2006. Out of this about 38% goes to payments for physician services. This makes physician payments a natural target for cost reduction strategies. According to the same Congressional Budget Office (CBO) report if current measures are undertaken then physicians would see a decline in payments anywhere from 25 to 30% over the next several years.