Which way is anyone’s guess. Under the formula, Medicare physician fees for 2008 would drop by 10 percent. This past Wednesday, however, the Medicare Payment Advisory Commission (MedPAC) recommended a fee increase of 1.7 percent, to reflect the increased cost of inputs for physician services and expected productivity gains.
It will be up to Congress to enact this proposal. There are other proposals related to this; then there’s the matter of the Iraq War. We’ll see. Start preparing contingency plans in the event that serious cuts occur.