The healthcare reform law increased Medicare fees for primary care ambulatory visits 10 percent for five years starting last year. Using a simulation model, the researchers sought to determine financial outcomes if the 10 percent fee increase was made permanent.
Their research showed the fee increase would increase primary care visits by 8.8 percent and the overall cost of primary care visits by 17 percent. Despite this increase in healthcare utilization and costs, there would also be a more than sixfold annual return in lower Medicare costs for other healthcare services, including inpatient and post-acute care. This decrease would result in a 2 percent drop in total Medicare costs.
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