By the numbers – 0.5%

The reduction President Obama has proposed to a formula used by the Independent Payment Advisory Board (IPAB), created last year by the Affordable Care Act to cut Medicare costs without affecting quality. The formula IPAB currently uses as a baseline for growth estimates is GDP per capita, plus 1%. The president has proposed to reduce that figure to GDP plus 0.5%. The lower threshold means IPAB will have deeper cuts to make. Accordingly, hospitalists are watching the proposal, as it could lower federal reimbursements as IPAB looks for ways to cut Medicare spending

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