This figure, reflecting a 2.2 percent fee increase for six months, is up from the previous conversion factor of $36.0791, which was issued on May 10.
The House passed the six-month fee fix on June 24, almost a week after CMS ordered Medicare intermediaries to begin processing claims at a 21.3 percent cut. CMS said physicians who were paid at the lower rate would need to contact their intermediaries to receive the rest of the payment.
The conversion factor is one of three elements in a formula that calculates a physician’s Medicare fee. The other two are the resource-based relative value scale (RBRVS) and the geographic practice cost index. The RBRVS is broken down into physician work relative value units, practice expense RVUs and professional liability insurance RVUs.
The initial Medicare conversion factor was set at $31.001 in 1992 and it has been updated since then, based on three factors:
• The Medicare economic index.
• An expenditure target “performance adjustment.”
• Miscellaneous adjustments including those for “budget neutrality.”
Read more Becker’s coverage on the fee fix.
Six-Month Fee Fix Starts, Brings Physicians 2.2% Medicare Fee Increase
Senate Fails to Pass Fee Fix; Claims Processing Under 21.3% Cut Begins Today
With Medicare Fee Cut Looming, Physicians Weigh Their Options
