Geographic variation in physicians' fees. Payments to physicians under Medicare and Medicaid
I. L. Burney, G. J. Schieber, M. O. Blaxall and J. R. Gabel
To study geographic differences in physician fees recognized by the
Medicare and Medicaid programs, we analyzed physician reimbursement rates
at the national, regional, state, and county levels. The results indicate
that nationally, Medicaid specialist fees are 77% of Medicare specialist
fees. Meidcare specialist fees in metropolitan areas are 23% higher than
those in nonmetropolitan areas, but there are no differences under
Medicaid. State Medicare specialist fees varied from 73% to 132% of the
national Medicare average, while Medicaid specialist fees ranged from 49%
to 179% of the national Medicaid average. State Medicaid fees for
specialists ranged from 39% to 100% of Medicare specialist fees. These
results indicate that under national health insurance, fees set at national
or statewide levels could have notable effects on physician remuneration in
some localities.