ED Coding and Reimbursement Alert

Reader Question:

Are the Sequester Cuts Included In the 2014 Conversion Factor?

Question: Does the physician conversion factor of $35.8228, effective January. 1 to March 31, 2014 include the two percent sequestration cut? If not, how is that reduction calculated and applied to physician fees?

Kentucky Subscriber

Answer: No, the conversion factor, used to calculate base fees, does not include the two percent sequester cut. That adjustment is applied on the paid amount, according to CMS. It should appear on the EOB as a separate line adjustment.

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