Physicians take another gut punch with 3.4% cut to Medicare Physician Fee Schedule

Medical Economics November 3, 2023
Todd Shryock

Conversion factor of $32.7375 set for 2024, decreasing reimbursement despite record inflation

CMS released its 2024 Medicare Physician Fee Schedule, and as expected, physicians are looking at another payment cut.

The Medicare finalized conversion factor of $32.7375 is a 3.4% cut from 2023 rates, which in turn, were a 2% reduction from 2022. In contrast, the Medicare Economic Index, a measure of practice cost inflation, increased to 4.6%, the highest this century, which followed a 3.8% increase last year.

While the PFS only applies to Medicare reimbursement, many private payer contracts are tied to Medicare rates, so the cuts to Medicare reimbursement can also affect how much physicians collect from private payers.

In addition to the reimbursement reduction, other highlights...

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