The Sharp Reductions in Medicare Payments for Noninvasive Diagnostic Imaging in Recent Years: Will They Satisfy the Federal Policymakers?

Purpose: The aim of this study was to examine recent trends in Medicare reimbursements for noninvasive diagnostic imaging (NDI). Methods: The Medicare Part B databases for 2000 to 2010 were used. For each procedure code, these files provide payment and other data. All NDI codes were selected. Medicare physician specialty codes were used to identify radiologists, cardiologists, all other nonradiologist physicians as a group, and independent diagnostic testing facilities. Part B NDI payment trends were tracked. Results: Overall Part B spending for NDI rose from $5.921 billion in 2000 to $11.910 billion in 2006 (+101%). There was then a sharp drop in 2007, resulting from the implementation of the Deficit Reduction Act. This was followed by a slight rise in 2008, then successive smaller drops the next 2 years, reaching $9.457 billion in 2010 (-21% vs 2006). Radiologists' payments were $2.936 billion in 2000, rose to a peak of $5.3 billion in 2006 (+81%), then dropped to $4.712 billion in 2010 (-11% vs 2006). Cardiologists' NDI payments were $1.327 billion in 2000, peaking at $2.998 billion in 2006 (+126%), then dropping to $1.996 billion in 2010 (-33% vs 2006). Other physicians' payments were $1.106 billion in 2000, peaking at $2.378 billion in 2006 (+115%), then dropping to $1.968 billion in 2010 (-17% vs 2006). Similar trends occurred in independent diagnostic testing facilities. Conclusions: After years of rapid growth in Medicare NDI payments, an abrupt reversal occurred starting in 2007. By 2010, overall NDI costs to Medicare Part B were down 21% compared with their 2006 peak. It is unclear whether this large payment reduction will satisfy federal policymakers.