“Fix The Docs” Without Driving Up The Deficit

Robert Moffit / November 13, 2009

Congress and the Administration are breaking records. They just piled up a deficit of over $1.4 trillion in 2009 alone. Needless to say moderates and fiscal conservatives in both political parties have cause for very bad night’s sleep.

The Doc Mess. The latest chapter in this crazy drama is to be played out next week when the House deals with the Medicare Doc Fix. At issue is the congressionally created formula for annually updating Medicare physician payment. The congressional formula ties physician payment to general economic growth: if physician payment increases faster than economic growth, payment is proportionally reduced. Of course, the basic concept is bizarre: there is no rational relationship between the supply and demand for medical services and the performance of the general economy, any more then there is a relationship in the demand for tonsillectomies and the phases of the Moon. But this official stupidity is the law; expect similar stupidities if Congress is successful in creating another government-run health plan made in the image and likeness of Medicare. (more…)