Medicare Physician Payment Changes in 2018 (February 2018)

February 2018 pages 7-9 Medicare Physician Payment Changes in 2018 Conversion Factor for 2018 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 The legislation repealed the Medicare sustainable growth rate (SGR) update methodology for physicians' services in order to provide positive annual payment updates of 0.5% starting July 1, 2015, and lasting through 2019. On November 2, 2017, the Centers for Medicare & Medicaid Services (CMS) released the Final Rule for calendar year (CY) 2018 Medicare Physician Payment Schedule (MFS). To calculate the 2018...

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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 summarizes Medicare physician payment policy changes effective in 2018 and explains why they matter to physician practices, billing teams, and coding professionals. It covers broad CMS updates under the Medicare Physician Fee Schedule, including payment valuation themes, primary care service changes, remote patient-monitoring coverage, Medicare card transition issues, geographic practice cost adjustments, professional liability insurance updates, patient relationship reporting, and imaging-related modifier requirements. The article is useful for readers tracking annual Medicare payment policy changes and the coding/administrative updates tied to them.

Why This Topic Matters

These annual Medicare updates can affect reimbursement, practice workflows, claim processing, and preparation for new reporting requirements. The article helps readers understand which policy areas changed for 2018 and where coding and administrative follow-up may be needed.

Article Sections

  1. Conversion Factor for 2018

    Summarizes the Medicare Physician Fee Schedule update for 2018 and related adjustments affecting overall physician payment. It also notes the anesthesia payment update discussed in the article.

  2. Target for Relative Value Adjustments for Misvalued Services

    Explains the annual target framework for redistributing expenditures related to valuation review of services. The section discusses how CMS applied the 2018 adjustment process.

  3. Coding Changes and Work Relative Values

    Reviews RUC recommendations and CMS implementation activity related to coding and work value updates for 2018. It also mentions the broader process used for publishing and reviewing code changes.

  4. Improving Payment Accuracy for Primary Care Payments

    Describes new or revised Medicare coverage and payment policies aimed at primary care, behavioral health collaboration, preventive services, and cognitive assessment-related care planning.

  5. Medicare: Coding, Coverage, and Valuation Policies for Remote Patient-Monitoring

    Covers Medicare payment and coverage policy for remote patient-monitoring-related services, along with related billing and reporting considerations. The section also references connections to other care management services.

  6. New Medicare Card

    Explains the transition from the existing Medicare identifier to the new beneficiary identifier and the operational timeline for the change. It also notes practice preparation and lookup support.

  7. Potentially Misvalued Services

    Discusses the work of RUC and related groups in identifying and reviewing potentially misvalued services. The section also summarizes the broader impact of valuation review efforts on physician payment.

  8. Geographic Practice Cost Index

    Summarizes Medicare payment adjustments that account for geographic differences in practice costs. It mentions index-related floors and state-specific considerations.

  9. Professional Liability Insurance

    Reviews CMS policy changes for professional liability insurance valuation inputs and specialty mix methodology. The section also covers how CMS planned to handle data updates for 2018.

  10. Patient Relationship Codes

    Describes the introduction of patient relationship category modifiers under MACRA-related reporting. It notes the voluntary use period referenced in the article.

  11. Payment Incentive for the Transition from Traditional X-Ray Imaging to Digital Radiography

    Covers Medicare policy related to imaging technology transitions and the reporting requirement associated with that policy. The section focuses on implementation timing and documentation implications.

  12. Learn More about MACRA and Medicare's Quality Payment Program

    Provides an overview of MACRA payment pathways and points readers to educational resources. It is a resource-oriented section for practices seeking broader program guidance.

What You Will Learn

  • How Medicare physician payment was updated for 2018 under the annual fee schedule process.
  • What broad policy areas CMS addressed in the 2018 final rule for physician services.
  • Which categories of primary care, remote monitoring, and practice administration changes were highlighted.
  • How Medicare card transition planning affected practice workflows and claims processing.
  • What general valuation and geographic payment topics were discussed for 2018.
  • How MACRA-related payment pathways and educational resources are framed for physicians.

Who Should Read This

  • Physicians
  • Medical coders
  • Billing staff
  • Practice managers
  • Revenue cycle teams
  • Compliance professionals
  • Health information management professionals

Codes Discussed

Code Ranges Discussed

Modifiers Discussed


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