Medicare Releases Final 2010 Payment Regulations

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The Centers for Medicare & Medicaid Services (CMS) released a final rule that updates payment policies and rates under the Medicare Physician Fee Schedule (MPFS) for calendar year 2010, beginning January 1, 2010. Current law requires that CMS adjust the MPFS payment rates annually based on an update formula, which requires application of the sustainable growth rate (SGR). The formula has provided negative updates every year since 2002, and each year the cuts have been averted by Congress. For 2010, Medicare payments to doctors are scheduled to drop 21.2 percent, resulting in a conversion factor of $28.3769 unless Congress intervenes. CMS and the White House have said that they remain committed to working with Congress to avert the physician payment cut. Currently, accompanying legislation (HR 3961) to the House health reform bill would provide permanent reform of the Medicare physician payment system and would repeal the 21 percent reduction scheduled for 2010; in the Senate, the Finance Committee health reform bill would create a one year fix.

CMS is also adopting several refinements to Medicare payments to physicians that will impact hematology:

  • There is anticipated to be a 1 percent reduction in oncology services for 2010. This is part of a four-year phase-in of a 6 percent total cut in payment attributed to other changes in reimbursement for allocation of practice expenses.
  • CMS will not use the Physician Practice Information Survey data to determine the practice expenses for medical oncology, but instead will continue to use the specialty supplemental survey data. This change will help to avoid further decline in reimbursement.
  • CMS is finalizing the proposal to stop making payments for consultation codes other than the G codes for telehealth services. Instead of consultation codes, hematologists will need to rely on existing evaluation and management services. The result will most likely be less reimbursement to specialists and increased reimbursement to primary care physicians.
  • The final rule contains several provisions to promote quality-of-care improvement through revisions to the Physician Quality Reporting Initiative, including the provision of more reporting options for practitioners and group practices and simplified electronic reporting.

ASH will be further analyzing the impact of the rule and providing additional information online. In addition, the ASH Practice Forum on December 5 in New Orleans will present the latest information about physician payment and health reform.

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