CMS Proposes Payment Cut for Physicians

In July, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule that announces and solicits public comments on proposed policy changes for Medicare payments under the Physician Fee Schedule (PFS) and other Medicare Part B issues effective on or after Jan. 1, 2025. According to CMS, the proposed rule is one of several to create a more equitable healthcare system that results in better accessibility, quality, affordability, empowerment and innovation for Medicare beneficiaries.

By factors specified in law, average payment rates under the PFS are proposed to be reduced by 2.93 percent in 2025 compared to the average amount these services are being paid for most of 2024. The change to the PFS conversion factor incorporates the 0.00 percent overall update required by statute, the expiration of the 2.93 percent increase in payment for 2024 required by statute, and a relatively small estimated 0.05 percent adjustment necessary to account for changes in work relative value units for some services. This amounts to a proposed estimated 2025 PFS conversion factor of $32.36, a decrease of $0.93 (or 2.80 percent) from the current 2024 conversion factor of $33.29.     ❖