Physicians will see a negative 4.6% update and a conversion factor of $36.1542 in 2007, CMS estimated in an April 7, 2006, letter to MedPAC regarding the 2007 physician update and sustainable growth rate. According to CMS, the current estimate of the SGR for CY07 is 0.7%. These estimates are based on the best data available at this time and may be subject to revision. (Click here to download the letter.)
The agency attributes the negative update to 8.5% increase in Medicare spending for physicians’ services in 2005. According to CMS, growth and intensity of physician services represented 7.5% of the 8.5% growth in total spending in 2005. Evaluation and Management services accounted for 31% of the 8.5% overall volume increase, while procedures represented 29%.
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