Medicare Economic Index


Also found in: Acronyms.

Medicare Economic Index

A measure of (physician) practice cost inflation developed in 1975 as a way of estimating annual changes in physicians’ operating costs and earnings levels. The MEI is based on multiple factors—e.g., salaries, prices of supplies and equipment, etc.—and is used by Medicare to determine annual adjustments of physician reimbursement for services.

The Medicare Economic Index (MEI) is the baseline for each year’s payment update calculation, and used in the target calculation to determine the price component of the Sustainable Growth Rate (SGR). Payment updates are equivalent to the MEI multiplied by an “adjustment factor”, which reflects how spending compares to the SGR targets. Since 1992, the MEI has been weighed in connection with the update factor for a physician fee schedule.
References in periodicals archive ?
2) The Medicare Payment Advisory Commission also recommended that physician productivity should be considered separately in update decisions as opposed to as a component of the Medicare Economic Index.
10)The Medicare Economic Index is an index of physician's practice costs developed and updated by the Health Care Financing Administration.
In its proposed 2003 physician fee schedule, CMS announced that it would increase the Medicare Economic Index (MEI), which helps adjust the fee schedule for inflation in medical practice costs, from 2.
For the PPS hospital input price index, the home health agency (HHA) input price index, and the Medicare economic index (MEI), wage growth accelerated in 1996.
3617, which would repeal the sustainable growth rate altogether and replace it with a payment increase based on the Medicare Economic Index.
Accelerating compensation prices for the SNF input price index, the Home Health Agency (HHA) input price index, and the Medicare Economic Index (MEI) are the reason these indexes are forecasted to have accelerated growth.
The CY 1996 HCFA update was based on the Medicare Economic Index (MEI) (Table 13), performance adjustments, and other adjustments.
The ACP in the continues to endorse the Medicare Payment Advisory Commission's recommendation that the SGR be repealed and replaced with a formula that is based on the Medicare economic index, minus a productivity adjustment, Mr.
There are two new tables, one on medical sector prices and one on the Medicare Economic Index (MEI).
However, because the MFS fee is compared with private fees for 1990, the 1992 conversion factor was deflated to the 1990 factor using the Medicare Economic Index for primary care and other services.
In addition to the hospital input price indexes, HCFA has developed the Medicare Economic Index (MEI) which has been used since 1975 to measure increases in the prices of economic inputs in physicians' offices under Medicare.
Since 1975, the rate at which the prevailing charge can increase has been limited to the rate of increase in the Medicare Economic Index (MEI), which reflects the physician's cost of doing business.

Full browser ?