Medicare to Pay for Oversight Services

WASHINGTON--For the first time, Medicare will make separate paymentsto physicians for supervising the care of patients receiving Medicare-coveredhome health and hospice services.

Prior to January 1, when the new regulation went into effect,payment for this oversight was considered to be bundled into Medicarepayments for physicians' visits and other services. Now, a physiciancan be paid for supervising home health or hospice care when theoversight requires more than 30 minutes a month.

Medicare expects nearly 5.3 million claims of about $60 each,for a total of $310 million, in 1995. This cost will not increasethe Medicare budget, but will be paid for with offsetting , across-the-boardadjustments throughout the Medicare physician fee schedule.