Question:
The Medicare Payment Advisory Commission recently voted to recommend to Congress to institute a set of pay-for-performance incentives for providers serving Medicare patients. This would include paying bonuses to providers as incentives to meet or exceed certain quality indicators. As an example, consider the following: Diabetics need to have a certain blood test (hemoglobin A1c) performed either annually or quarterly depending on how well they manage their illness. Let's say that studies show that physicians follow these guidelines for only 60% of their diabetic patients, and the government will make incentive payments to those physicians if 70% or more of their diabetic patients are tested appropriately. Incentive payments are not uncommon among other non-Medicare payers, as well as in non-medical markets. When it comes to providing medical care, do you think such an incentive scheme is appropriate or not? Give your reasons.