Hope for Averting Double Whammy on Medicare Fees

However, if Congress decides to mandate a positive update or simply to eliminate the update of minus 5.5%, that would mean a theoretical increase in Medicare spending on physician fees in 2007 over and above what the formula dictated. As a result, Congress would have to cut spending an equal amount elsewhere. Burgess noted that there are some possible ways to reduce current Medicare spending and use those savings to pay for the change to the conversion factor update. "Redirecting the stabilization fund from the Medicare Modernization Act provides some funds," he stated. "Also, Medicare currently pays for indirect costs of medical education twice, directly and by inflating payments to Medicare Advantage plans."