EM Coding Alert
Look to April 1 for Another CF Reduction
Question: Has the new conversion factor been updated since it was released in error in 2014?
Washington Subscriber
Answer: Yes, CMS issued a correction to the physician fee schedule (PFS) in January. The update explained that the conversion factor (CF) for the period of Jan. 1 through March 31, 2015 is $35.7547.
In 2014, CMS erroneously reported the CF update would be $35.8013.
Watch for: According to CMS in the Federal Register Vol. 79, No. 219, “After March 31, 2015 the standard calculation of the PFS CF under the sustainable growth rate (SGR) formula would apply. Therefore, from April 1, 2015 through December 31, 2015 the conversion factor would be $28.2239.”
The current law requires the reduction of the PFS rates by an average of 21.2 percent on April 1, 2015 due to the SGR formula. Unless Congress steps in before April 1, your pay will take a hit in quarter two.
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