Medical Practice Management
Dec 19

Large majority of codes still face pay cut in 2007

From Part B News (www.partbnews.com):

You can expect close to 85% of all payable codes to see cuts in payment next year despite the freeze to the 2007 conversion factor passed by Congress on Dec. 9. President Bush is expected to sign the legislation on Dec. 20.

The bill changes the conversion factor, but CMS will still implement other changes to your payments that were part of the final 2007 Medicare Physician Fee Schedule released Nov. 1. One of the key changes was a 10.1% reduction in the value of all work relative value units (RVUs) to pay for increases in E/M reimbursements that are part of the five-year review.

The vast majority of codes not considered as part of the five-year review would still see that 10.1% reduction to work RVUs. As a result, payment for those services would fall. A Part B News analysis shows that 14.5% of codes will see increased payments after the conversion factor freeze. The remaining codes would be paid the same in 2007 as in 2006, or cannot be measured because they’re being switched to carrier-pricing.

Announcing: 
Emergency Audio Conference:
2007 Payments: How Last Minute Legislation Will Change Your Payment Outlook

Just one day away! This conference will be held Dec. 20, 2006 from 1-2 p.m. ET.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →