Large majority of codes still face pay cut in 2007

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

How New Legislation Impacts 2007 Medicare Payments

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.

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