Latest Medicare News on Physician Reimbursements
Physician Reimbursement Cuts for 2024
The Centers for Medicare & Medicaid Services (CMS) have finalized a 3.4% cut to Medicare reimbursement rates for physicians in 2024. The conversion factor, which determines the amount physicians are paid for services, is set at $32.7442, down from $33.89 in 2023. This follows a trend of reductions, with a 2% cut in 2023 and even steeper cuts for certain specialties, such as radiation oncology, which has seen a cumulative 25% reduction since 2013.
Impacts on Physician Practices
These cuts come at a time when practice costs are rising, driven by record inflation rates in the medical field. The Medicare Economic Index, which measures practice cost inflation, increased by 4.6% in 2024, marking the highest rise in this century. Physician groups argue that the continued cuts make it difficult for practices to remain viable, potentially impacting patient access to care.
Positive Changes in Medicare Policies
Despite the reimbursement cuts, CMS has introduced several positive changes aimed at enhancing care delivery and equity. These include:
- Telehealth Services: Continued coverage and payment for telehealth services at higher non-facility rates through 2024. This includes allowing real-time audio and video interaction for direct supervision.
- Behavioral Health Integration: New payments for community health integration services and principal illness navigation services, which aim to improve care coordination and support for patients with complex health conditions, including cancer and behavioral health issues.
- Social Determinants of Health: Introduction of new coding and payment for risk assessments related to social determinants of health, which can be added to annual wellness visits or other evaluations.
Calls for Reform
Physician groups are calling for Congress to modernize Medicare's payment system to include annual inflationary adjustments and to address the budget neutrality requirements that drive these cuts. They emphasize the need for reforms to ensure long-term stability and viability for physician practices.
In summary, while CMS's new rule for 2024 includes significant payment cuts that pose challenges for physician practices, there are also promising initiatives aimed at improving care coordination, behavioral health integration, and support for underserved communities. However, the ongoing financial pressures highlight the urgent need for comprehensive Medicare payment reform.
