• AAFP Advocacy Focus: Medicare Physician Payment

    Medicare beneficiaries — who make up about one of every four patients in a typical family physician’s practice, with elderly and disabled patients numbering as many as six of every 10 — depend on you.

    That's why the Academy advocates to improve Medicare physician payment rates and ensure physicians receive stable and appropriate compensation for the services they provide to Medicare beneficiaries, allowing them to focus on caring for their patients — who can rest assured their care will not be interrupted. 

    Medicare Physician Fee Schedule (MPFS)

    The Centers for Medicare & Medicaid Services (CMS) annually updates the MPFS for the upcoming calendar year. The regulatory update addresses physician payment and coverage for services under Medicare Part B and the Quality Payment Program through revisions to payment policies, rates, and other provisions, including geographic adjustments and the relative value units (RVUs) assigned to services. RVUs assigned to each code reflect the physician work, practice expense, and professional liability insurance involved in furnishing that service. The AAFP submits comprehensive comments on the Medicare Physician Fee Schedule proposed rule each year.

    2023 Medicare Payment Rates and Conversion Factor

    CMS has issued the 2023 MPFS final rule, and its new payment policies take effect on Jan. 1, 2023, unless otherwise indicated. The AAFP has summarized the rule for members. Following staunch AAFP advocacy, Congress provided relief from forthcoming Medicare payment cuts by increasing the 2023 Medicare conversion factor by 2.5%. However, the final, updated 2023 conversion factor is still about 2% lower than the 2022 conversion factor. As a result, some family medicine practices could experience reductions in Medicare allowed charges in 2023.

    AAFP Wins in the CY 2023 MPFS

    As the Academy recommended to CMS, the final rule provides telehealth payment certainty through at least the end of CY 2023, additional flexibility and support for behavioral health integration, and an annual inflationary adjustment for vaccine administration payments.