CMS Announcement

The Centers for Medicare and Medicaid Services (CMS) have notified Medicare contractors to begin the process of implementing the 10.6% reduction in the physician payment update for the remaining six months of this year. Effective July 1, 2008, the current Medicare conversion factor of $38.0870 will decrease to $34.0682, unless Congress approves legislation to stop the pay cut.

For the first six months of 2008, physicians avoided a 10.1% reduction to their payment update, as a result of the Medicare, Medicaid and SCHIP Extension Act of 2007. The Act also provided a 0.5% increase to the physician payment update through June 30, 2008. Those payment provisions of the Extension Act expire June 30th.

If legislation is approved and signed by the President, CMS will instruct its contractors to alter their fee schedules to reflect the revised payment update and conversion factor. Depending on when legislation is passed, payments may be made retroactively. CMS will provide further instructions to its contractors and the physician community once more details of any changes become available.

Stay tuned for more information on how you can get involved to stop these cuts from becoming a reality.