Skip to main content

The timeline can be navigated by dragging the pointer on the timeline bar, located at the bottom of the screen on the desktop version and on the left of the screen on mobile. To filter by a specific topic, make a selection on the dropdown “Filters” menu or click “Search” to do a keyword search. To learn more, click “Read More” below.

Read More

Medicare begins billing payment by diagnosis.

1980

MED
HPI

Under President Reagan, Medicare shifts to a system of payment to physicians by diagnosis, known as diagnosis-related group reimbursement (DRG), instead of by treatment. Private plans quickly follow suit.

This is driven by growing complaints from insurance companies that the traditional fee-for-service method of payment to physicians is being exploited. A specific fee or payment amount per patient, known as "capitation," becomes more common.