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General Surgery Coding Alert

Fee Schedule Update:

Higher Payments Will Boost Your Bottom Line

Published on Fri Jan 02, 2004

Once again for 2004, Congress has passed legislation that reverses a threatened reduction in Medicare payments and instead authorizes a slight increase in the payment conversion factor, which should mean an increase in payments for general surgery practices.
 
In September 2003, CMS released a new Physician Fee Schedule, which included a payment conversion factor of $35.1339, effective Jan. 1, 2004. This represented a drop of 4.5 percent from the 2003 rate of $36.7856. At that time, CMS Administrator Tom Scully said, "CMS has no option other than to base this final rule on the current law. If Congress does pass legislation improving payments to physicians, CMS will implement the new payment rates as quickly as possible."
 
Note: To access the complete Physician Fee Schedule, visit the CMS Web site http://cms.hhs.gov/physicians/pfs.
 
On Nov. 25, Congress passed a sweeping Medicare reform bill, the Prescription Drug and Medicare Modernization Act Conference Report, which contains a provision allowing for an increase in the payment conversion factor of about 1.5 percent for 2004 and 2005. A final figure has not yet been announced.
 
Keep watching General Surgery Coding Alert for more information, as it becomes available, on the fee schedule and the effect of the new legislation.

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