CMS Announces Increase in
2003 Physician Payment Rates, Extension of Physician Enrollment
Deadline
February 28, 2003 - The Centers for Medicare and Medicaid
Services (CMS) Feb. 28 published in the Federal Register
[68
FR 9567] a regulation that replaces the 4.4 percent
cut in the CY 2003 physician fee schedule conversion factor,
scheduled to take effect on March 1, with an conversion factor
increase of 1.6 percent. The new rule will be effective March
1, 2003.
The fee schedule is updated annually according to a formula
set out in Medicare law. In 2002, the statutory formula required
Medicare to reduce rates paid to physicians by an average
of 5.4 percent and the law would have required Medicare to
reduce rates again in 2003 by an average of 4.4 percent.
The change in the fee schedule is the result of recently
enacted legislation that allowed CMS to revise figures used
in the statutory formula and to correct past errors. This
change will provide an additional $54 billion for Medicare
physician payments over the next ten years.
Under the fee schedule rule released last December, and previously
scheduled to go into effect on March 1, the conversion factor
was set at $34.59. However in response to the Congressional
action, CMS has now set the conversion factor at $36.79. The
new fees will apply to services provided from March 1 to Dec.
31, 2003, while services provided from Jan. 1 to Feb. 28,
2003 will still be paid at the 2002 conversion factor rate
of $36.20.
CMS has extended the deadline for physicians to decide whether
or not they want to participate in Medicare during CY 2003
until April 14, 2003.
Information:
Denise Dodero, Associate Vice President
AAMC Health Care Affairs
ddodero@aamc.org
(202) 828-0493
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