Medicare physician fee schedules: Issues and evidence from South Carolina

Three key research questions are identified and analyzed in this article. First is an investigation of whether Medicare already pays physicians using de facto fee schedules. Evidence from South Carolina suggests not. Second is an evaluation of the physician procedures and specialties likely to be affected by imposition of a Medicare fee schedule. Medical visits are identified as especially susceptible. Third is a report on simulated effects of a charge-based fee schedule on Medicare program payments, physicians' practice revenues, and beneficiaries' liabilities.