Medicare Physician Payment Changes in 2016 (February 2016)

February 2016 pages 7-9 Medicare Physician Payment Changes in 2016 SGR Repealed and Conversion Factor for 2016 Following years of advocacy by the nation's physicians standing up for their patients and their practices, Congress finally repealed the Medicare sustainable growth rate (SGR) formula. The Medicare Access and Children's Health Insurance Program (CHIP) Reauthorization Act (MACRA) of 2015 was signed into law on April 16, 2015. The legislation (P.L. 114-10) repealed the SGR update methodology for physicians' services to provide positive annual payment updates of 0.5% starting July 1, 2015, lasting through 2019, and required the Centers for...

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Note:  The following article synopsis was NOT provided by the AMA. It was created by Find-A-Code/innoviHealth.

Article Overview

This article reviews major 2016 Medicare physician payment and reporting changes under CMS and related federal legislation. It is aimed at coders, billing staff, physician practices, and compliance professionals who need a broad understanding of fee schedule updates, quality reporting programs, geographic and surgery payment policy changes, and selected CPT-related developments affecting Medicare claims in 2016.

Why This Topic Matters

The article helps readers understand how 2016 Medicare physician payment policy affected reimbursement, reporting obligations, and practice operations. It also situates coding and valuation changes within broader CMS program updates so stakeholders can assess relevance to physician billing and compliance workflows.

Article Sections

  1. SGR Repealed and Conversion Factor for 2016

    Explains the legislative and CMS context for the 2016 physician fee schedule update and the resulting conversion factor changes.

  2. Target for Relative Value Adjustments for Misvalued Services

    Summarizes the policy framework for redistributing expenditures related to misvalued services and how CMS applied it for the year.

  3. Twenty-fifth Anniversary of Medicare RBRVS

    Reviews longstanding relative value update activity and the role of specialty society recommendations in physician payment development.

  4. Advanced Care Planning Services

    Describes the addition of advance care planning as a Medicare-covered service and the related CPT code updates discussed by CMS.

  5. Lower Gastrointestinal Endoscopy Services

    Covers CMS finalization of revised coding and valuation for a group of lower gastrointestinal endoscopy services.

  6. Radiation Therapy

    Discusses CMS action on radiation treatment delivery coding and the related equipment utilization assumptions used in payment calculations.

  7. Potentially Misvalued Services

    Addresses CMS and RUC efforts to identify services for further review and update through valuation processes.

  8. Incentive Payments to Primary Care Practitioners for Primary Care Services

    Summarizes the status of Medicare incentive payments for primary care practitioners and the end of a temporary bonus period.

  9. Significant RVU Reductions Phase-In

    Explains CMS rules for phasing in certain large year-to-year relative value reductions for existing services.

  10. Geographic Practice Cost Index (GPCI)

    Reviews geographic payment adjustments and statutory floor policies affecting physician practice cost indices.

  11. Global Surgery

    Describes federal restrictions and data collection planning related to global surgery valuation policy.

  12. Physician Quality Reporting System (PQRS)

    Summarizes 2016 reporting requirements and the resulting payment adjustment framework under PQRS.

  13. Value-Based Payment Modifier (VM)

    Covers CMS implementation details for the value-based payment modifier and related performance assessment issues.

  14. Physician Compare

    Discusses public reporting updates on the CMS Physician Compare website and the types of information being added.

  15. Physician Services In Off-Campus Provider-Based Departments

    Introduces Medicare place-of-service updates for off-campus and on-campus outpatient hospital settings.

What You Will Learn

  • How CMS and federal legislation affected the 2016 Medicare physician payment schedule
  • Which broad categories of physician services and payment policies were revised for 2016
  • How quality reporting and value-based payment programs intersected with physician reimbursement
  • What kinds of CPT-related service groups and CMS valuation topics were highlighted
  • How Medicare place-of-service updates were addressed for 2016 claims reporting

Who Should Read This

  • Medical coders
  • Physician practice managers
  • Billing and reimbursement staff
  • Compliance professionals
  • Health care consultants
  • Quality reporting staff

Codes Discussed


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