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When Healthcare Payments Ignore Patients’ Time, Everyone Pays | Opinion

When Healthcare Payments Ignore Patients’ Time, Everyone Pays | Opinion

Summary

The Centers for Medicare & Medicaid Services finalized Medicare physician payment changes for 2027 in early November. The payment policy described would pay the highest-priced service in certain same-day combinations in full and reduce payment for other affected services by 50%; evidence on patient time and treatment delays does not establish that the changes will cause harm.

Key Facts

  • CMS finalized Medicare physician payment changes for 2027 in early November.
  • The policy concerns certain cases in which a separately identifiable office or outpatient evaluation occurs on the same day as a procedure.
  • The payment adjustment applies when the services are performed by the same physician or by physicians in the same practice.
  • Under the described payment method, the highest-priced service receives full payment and other affected services receive 50 percent.
  • CMS says the adjustment addresses possible overlap in resources and payment for work already covered by a procedure.
  • A report highlighted by the National Institutes of Health estimated that cancer patients’ travel, waiting, and care time represented $4.87 billion nationally in 2019.
  • A 2026 meta-analysis found that each additional 30-day wait before initial surgery for invasive breast cancer was associated with a 15 percent higher risk of death.
  • The time-cost estimate and surgery-delay finding do not establish that the Medicare payment changes will cause comparable effects.
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