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Radiology Benefit Management Could Save Medicare up to $18 Billion Over 10 Years
Date:7/16/2009

ne. Ten-year savings estimates range from $11.6 billion to more than $18 billion. The report uses utilization data of commercial payers who implemented MedSolutions' RBM services to project potential Medicare savings.

The savings outlined in the report are calculated using the methodology typically used by the Congressional Budget Office and Office of Management and Budget. For example, the estimates take into consideration the cost of implementing the program, premium offsets and the deduction of beneficiary co-payments. The report also introduces additional conservative assumptions. In addition, the report considers potential differences between the program's implementation in Medicare and commercial settings and it considers the possibility of a reduced growth rate of Medicare spending on advanced imaging services.

"Medicare has a long history of successfully partnering with the private sector to implement best practices that improve efficiency while maintaining quality of care," said Thorne. "Management of high tech imaging is clearly an area where Medicare can improve its business practices. In fact, the original Social Security legislation authorizing the Medicare Program called for Medicare to emulate the private insurance practices of the day.

"Today, 90 percent of commercial insurers, including many of those covering Congress and federal employees, use an RBM to improve the quality and cost effectiveness of imaging services provided to members. Partnering with an experienced RBM provider to control advanced imaging expenditures would save Medicare billions in the coming years."

The report was developed and validated by Dobson DaVanzo & Associates, LLC, a health economics consulting firm located in the Washington, D.C., metropolitan area. The report includes baseline imaging utilization statistics which are consistent with those produced by the Centers for Medicar
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SOURCE MedSolutions
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