Pathology/Lab Coding Alert

After gloomy predictions of the second straight annual rate cut for Medicare physician services, pathologists can see blue skies. CMS boosts Medicare payment rates to physicians by an average of 1.6 percent beginning March 1 rather than decreasing payment by 4.4 percent as expected.

The good news doesn't stop there, because Congress allowed changes to the statutory formula used to calculate the Fee Schedule conversion factor. "The corrections we have made to the formula will have a positive impact not only in 2003 but for future updates," CMS Administrator Tom Scully says.

The 2002 conversion factor was $36.20, and the 2003 conversion factor as of March 1 is $36.79. Medicare pays claims processed in January and February for services rendered in those months at the 2002 rate.