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Chart 2: Intergovernmental Transfer Financing IGT from Physician Group Example
Chart 2 shows an example of intergovernmental transfer financing from a physician group to a state (physician upper payment limit, or UPL). In the example State, the statutory match is 50%. The State claims a supplemental payment of $600. CMS pays a 50% match, or $300. The physician group then transfers $300 to the State. The State then takes the $600 total and pays $500 to the physician group, keeping $100. In the end, the net loss to CMS is $300, the net gain to the physician group is $200, and the net gain to the State is $100, making the effective match rate 100%.
Last Revised: November 6, 2003
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