Could higher doctor fees actually reduce health care costs?

Federal and state agencies across the country have begun experimenting with the concept of paying doctors higher fees in an attempt to lower the overall cost of health care (Source: “Trying to Save by Increasing Doctors' Fees,” New York Times, July 21, 2008).

The premise behind the experiment is that by paying primary care physicians more money, they can devote more time and attention to their patients and thereby avoid the expense of unnecessary tests and visits to specialists.

Insurers are conducting pilots in at least six states and Medicare and Medicaid also are experimenting with higher physical payments.