U.S. Rep. Darin LaHood (R-IL) on June 18 cosponsored a bipartisan bill to improve the accuracy of geographic pricing adjustment factors under the Medicare program and to permanently extend them to doctors serving in rural communities around the nation.
Rep. LaHood introduced the Keep Physicians Serving Patients Act of 2019, H.R. 3302, with lead sponsor U.S. Rep. Abby Finkenauer (D-IA) to adjust the geographic practice cost index (GPCI) so it better reflects the cost of labor and the practice of medicine in rural communities.
“Ensuring Medicare providers in rural communities like those I represent in central and west Illinois are not unfairly impacted from lower payments based on an outdated geographic practice cost indexes (GPCI) is vital,” Rep. LaHood said.
According to the Centers for Medicare and Medicaid Services, the Medicare physician fee schedule pricing amounts are adjusted to reflect the variation in practice costs from area to area. A GPCI has been established for every Medicare payment locality for various components of a procedure’s relative value unit, including day-to-day work, practice expense, and malpractice. The GPCIs are applied when a fee schedule payment amount is calculated using a specific math operation.
Current Medicare policy includes outdated GPCIs that result in inadequate payments for physicians practicing in rural areas, discouraging them from serving such areas, according to Rep. LaHood’s office.
If enacted, H.R. 3302 would permanently set a GPCI minimum in regions across the country to ensure all physicians are properly compensated for the services they are providing to patients.
“I’m proud to join this bipartisan group to introduce this important piece of legislation, which will modernize the GPCI formula, accounting for the unique practice needs of rural providers, and ensure physicians can continue serving patients in need regardless of where they live,” said the congressman.