Medicare Physician Fee Schedule

The Medicare Access and CHIP Reauthorization Act (MACRA) was signed in April 2015. This law:

  • Repeals the Sustainable Growth Rate (SGR) methodology for determining updates to the Medicare physician fee schedule.
  • Establishes annual positive or flat fee updates for 10 years and institutes a two-tracked fee update afterwards.
  • Establishes a Merit-based Incentive Payment System that consolidates existing Medicare fee-for-service physician incentive programs.
  • Establishes a pathway for physicians to participate in alternative payment models, including the patient-centered medical home.
  • Makes other changes to existing Medicare physician payment statutes.

On November 2, 2017, the Centers for Medicare & Medicaid Services (CMS) released a final rule that changes the Medicare physician fee schedule (MPFS) and other Medicare Part B payment policies for calendar year 2018. The policies are effective on January 1, 2018. The AAFP prepared a summary of the final rule to prepare members for 2018.


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