Actuarial Studies: Physician Response
Guidance for This analysis indicates that there is a statistically significant relationship between Medicare price reductions for physicians' services and partially offsetting increases in the volume and intensity of such services. There continues to be minimal evidence supporting a volume-and-intensity response to price increases.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: March 10, 2012
This analysis indicates that there is a statistically significant relationship between Medicare price reductions for physicians' services and partially offsetting increases in the volume and intensity of such services. These results also suggest that the magnitude of this relationship may have decreased over time, possibly in response to the changes in Medicare's reimbursement mechanism. There continues to be minimal evidence supporting a volume-and-intensity response to price increases.
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