The Biden administration has released the proposed physician fee schedule for 2024, and a 3.34% decrease in the conversion factor is likely to draw plenty of ire from doctors.
The agency said that under the proposed rule, payments overall would decrease by 1.25% compared to 2023. However, the Centers for Medicare & Medicaid Services (CMS) set the conversion factor at $32.75, down $1.14 or 3.34% from last year.
Under the physician fee schedule, the conversion factor is the number of dollars assigned to the relative value unit, a key element in how CMS calculates payouts for physicians in Medicare, reports Fierce Healthcare.
In the release, CMS said that while it is decreasing overall payments and adjusting the conversion factor, it is proposing pay hikes for primary care and other services. These increases require cuts elsewhere to achieve budget neutrality, CMS said.
Provider groups were already expressing concern about the changes within an hour of the rule’s release. In a statement, the Medical Group Management Association called on Congress to take another look at existing law to ensure that providers are compensated fairly. Read more.
