Medicare Physician Fee Schedule

Overview

On November 27, the Centers for Medicare & Medicaid Services (CMS) released the final 2014 Medicare Physician Fee Schedule. This rule revises payment policies under the Medicare Physician Fee Schedule (MPFS) and makes other policy changes related to Medicare Part B payments.

The 2013 Medicare conversion factor is $34.02. Unless Congress intervenes before December 31, 2013, the 2014 Medicare conversion factor will be $27.20. The fee schedule payment cut due to the sustainable growth rate (SGR) is, in fact, approximately 24 percent. However, at the same time, changes were made in the weights assigned to the three fee schedule components—physician work, practice expense, and malpractice expense—to more closely match their assigned weights in the Medicare Economic Index. To offset the aggregate impact of this “rescaling” of the three fee schedule components, a positive 4.72 percent adjustment was made to the fee schedule conversion factor. The net impact of these changes produced a conversion factor that is 20.1 percent lower than the 2013 conversion factor.

AAFP Perspective

In a media statement released after the final rule became available, the AAFP acknowledged that CMS is moving in the right direction in establishing a health care system that meets patients’ needs for a usual source of care and a continuous relationship with a primary care physician, but the statement acknowledged our disappointment that, unless Congress acts, the agency must implement cuts due to the flawed sustainable growth rate formula. The AAFP created a comprehensive summary released after the final rule became available, the AAFP acknowledged that CMS is moving in the right direction in establishing a health care system that meets patients’ needs for a usual source of care and a continuous relationship with a primary care physician, but the statement acknowledged our disappointment that, unless Congress acts, the agency must implement cuts due to the flawed sustainable growth rate formula. The AAFP created a comprehensive summary(27 page PDF) of the final 2014 MPFS.


Recent Documents

Find Related Documents





Search the Archive