CMS Final Physician Rule Calls for 27.4% Pay Cut Budget Impasse Could Block a Legislative Fix This Year

To contact us Click HERE
On October 21, 2011, Health and Human Services Secretary Kathleen Sebelius approved the Final Rule setting the SGR-based Medicare Part B Physician Fee Schedule for 2012. 
Barring Congressional intervention, the Final Rule will cut physician reimbursement and other Medicare Part B payments based on the physician fee schedule by 27.4% effective January 1, 2012. 
The cut results from a scheduled reduction in the conversion factor, from its current level of $33.9764 in 2011 to $24.6712, on January 1.
In recent years, Congress intervened legislatively to stop SGR cuts.  This time may be different.  With lawmakers at an impasse over balancing the budget, it is questionable whether Congress can reach an agreement over any payment fix.  In that case, a substantial reduction in physician reimbursement will occur.