AMA CPT® Assistant - 2011 Issue 1 (January)
Medicare Physician Payment Changes: 2011 Conversion Factor (January 2010)
January 2011 pages 3-5 Medicare Physician Payment Changes: 2011 Conversion Factor On November 30, 2010, President Obama signed the HR 5712 Physician Payment and Therapy Relief Act of 2010. This Act maintained the 2010 conversion factor through December 31, 2010. The cost ($1 billion over 10 years) of this one-month postponement will be paid for by changes in Medicare reimbursement for outpatient therapy services. This short-term fix allowed Congress the time to adopt HR 4994 Medicare and Medicaid Extenders Act of 2010, a one-year freeze on sustainable growth rate (SGR) related negative updates to the Medicare conversion factor for...
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Article Overview
This article summarizes major 2011 Medicare physician payment changes and the policy updates behind them. It covers conversion factor revisions, relative value scale and practice expense changes, geographic practice cost index updates, Medicare Economic Index rebasing, and several incentive and preventive service provisions affecting physicians and other clinicians. The article is useful for coders, billers, compliance staff, and physician practices that need a high-level understanding of how 2011 fee schedule policy changes may affect payment and reporting.
Why This Topic Matters
These updates affect Medicare reimbursement, incentive eligibility, and fee schedule calculations across multiple services and specialties. Understanding the scope of the changes helps practices anticipate payment shifts and related reporting requirements.
Article Sections
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January 2011 pages 3-5
The opening identifies the publication context and introduces the article’s focus on Medicare physician payment policy for 2011.
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Coding Changes and Work Relative Values
This section summarizes relative value update activity, including CMS review of work, practice expense, and liability-related recommendations across selected services.
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Potentially Misvalued Services
This section describes the screening framework used to identify services for revaluation and the broader redistribution concept tied to those reviews.
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Practice Expense Relative Values
This section addresses updates to practice expense methodology, survey-based data transitions, and equipment utilization assumptions used in fee schedule calculations.
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Geographic Practice Cost Indices
This section covers scheduled geographic index updates and legislation affecting payment floors in selected localities.
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Rebasing and Revising of the Medicare Economic Index
This section explains the Medicare Economic Index revision and its effect on the components used in physician payment calculations.
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Incentive Payments to Primary Care Practitioners for Primary Care Service
This section discusses primary care incentive eligibility, covered provider groups, and the types of services associated with the incentive program.
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Incentive Payments for Major Surgical Procedures in Health Professional Shortage Areas
This section outlines incentive payment policy for qualifying surgical services performed in shortage areas and mentions related modifier development.
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Preventive Services
This section reviews Medicare preventive service coverage changes, including wellness-related services and cost-sharing changes.
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Physician Quality Reporting System
This section summarizes quality reporting incentive and penalty timing, reporting thresholds, and eligible reporting arrangements.
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Electronic Prescribing
This section covers the e-prescribing incentive program, reporting requirements, and the timeline for future penalties.
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Multiple Procedure Payment Reduction Modifications
This section discusses Medicare policy changes affecting multiple procedure payment reductions for therapy and imaging services.
What You Will Learn
- How the 2011 Medicare physician payment update is structured
- Which broad policy changes affected conversion factor calculations
- How Medicare updated relative value and practice expense methodology
- What categories of incentive and preventive service policies were highlighted
- How reporting programs and multiple procedure payment policies were changing for 2011
Who Should Read This
- Medical coders
- Physician office billers
- Compliance professionals
- Practice managers
- Healthcare reimbursement staff
- Physicians and clinician administrators
Codes Discussed
Code Ranges Discussed
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