Trends in medicare reimbursement for the resection of spinal tumors: 2000–2021

Despite recent fiscal expansion and rising healthcare expenditures, reimbursement rates for specific surgical procedures like spinal tumor resections remain underexplored. This study analyzes trends in real-value Medicare Part B reimbursements for spinal tumor resections over a 21-year period by querying the Medicare Part B database using relevant CPT codes from 2000 to 2021. Data included the aggregate number of procedures, allowed charges, and payments per procedure. Average payments per procedure and expected patient payments were calculated based on the 20% coinsurance of Medicare Part B. Compound Annual Growth Rates (CAGR) were determined and adjusted for inflation using the Consumer Price Index for All Urban Consumers (CPI-U) and the Medical Care component (CPI-MEDSL), representing out-of-pocket expenses. Generally speaking, the volume of spinal tumor surgeries increased by 28.77%, and average gross reimbursement rose by 13.57% without inflation adjustment. After adjusting for inflation, average reimbursement decreased by 27.83%. The CAGR analysis showed a 1.23% annual increase in procedures and a 0.64% annual increase in unadjusted reimbursements, but a 1.66% annual decrease when adjusted for inflation. Patient payments increased by 31.55% (CAGR of 1.31%); however, when adjusted for the 201.4% rise in medical care costs, patient payments effectively declined by 44.63%, with an annual decrease of 2.92%. Despite increased nominal healthcare spending, inflation-adjusted reimbursement rates for spinal tumor resections have declined. This trend raises concerns regarding the sustainability of current reimbursement policies and their impact on maintaining advancements in spinal surgery.