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Medicare Reimbursement Disparity Revealed in Simple vs. Complex Cataract Surgery

Simple and difficult cataract surgery cases were compared economically, and it was discovered that complex surgeries need more time and effort from doctors.

The study measured the cost difference between straightforward and complex procedures using a technique known as time-driven activity-based costing.

The disparity in Medicare Reimbursements for Complex Cataract Surgery

 The results indicate that Medicare reimbursements may not adequately cover the increased costs associated with complex cataract surgery. 

The researchers stress the significance of utilizing more accurate cost estimates, like TDABC, to appropriately inform the physician fee schedule.

 The study’s findings contribute to ongoing efforts to improve healthcare policy and reimbursement accuracy.

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Specialist Appointment Coverage Declines

Medicare-reimbursement-disparity-revealed-in-simple-vs-complex-cataract-surgery
Simple and difficult cataract surgery cases were compared economically, and it was discovered that complex surgeries need more time and effort from doctors.

Yet, data shows that over the past 20 years, the amount of Medicare coverage for specialist medical appointments has decreased gradually and dramatically and is now significantly lower than that of GP visits, prompting calls for reform from patient groups.

The Australian Institute of Health and Welfare (AIHW) released Medicare statistics on Thursday, and it shows that the percentage of subsidized fees varies significantly depending on the type of consultation.

The greatest Medicare subsidy rates in 2022 were for GP visits and pathology treatments, with 89% and 95% of all fees for both services being covered, respectively.

From roughly 92% in 2000, the coverage for Physician visits has somewhat decreased. The lowest level of subsidies in 2022 went to anesthetics and obstetrics visits, with around 40% of all provider costs paid for each of those specialties.

Patients are required to pay the gap out-of-pocket, through private health insurance, workers’ compensation, or a combination of these.

In 2022, Medicare would cover around 58% of the costs for other specialist appointments, down from 79% in 2000, while 49% of the costs for surgeries would be covered by subsidies.

Medicare paid about 78% of allied health costs and a similar percentage for optometry, while paying 87% of the costs associated with diagnostic imaging (allied health includes a range of health services, such as physiotherapy, psychology, and occupational therapy).

The research also demonstrates that those who reside in more rural places tend to consume fewer services covered by Medicare.

In 2022, 8.5 services were utilized on average per person in extremely remote places, with a subsidy rate of 85%. Major city residents used 18.3 services on average, with a 76.4% subsidy rate.

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