The Health Care Financing Administration announced that Medicare payments rates to physicians will increase by 4.5% overall next year. In 2001, Medicare will pay physicians approximately $40 billion, up from $37 billion this year. 

The 4.5% figure is the net result of adjustments made under the law to a 5.1% update in the final physician fee schedule for calendar year 2001. The final fee schedule rule was published in the November 1 Federal Register.