Special Report: Year 2002 conversion factor drops to $36.1992

Why This Topic Matters

The 2002 fee schedule changes affected physician payment, service valuation, and coverage for many commonly billed services. Understanding the scope of these updates helps billing and compliance teams track Medicare reimbursement changes and related policy shifts.

Article Sections

1. 2002 RBRVS conversion factor and payment update context

   Introduces the 2002 Medicare physician fee schedule update and the factors discussed in relation to overall payment changes. It also places the year’s update in the context of earlier fee schedule movements.

2. Medicare Economic Index and Sustainable Growth Rate

   Summarizes the Medicare Economic Index and the Sustainable Growth Rate as components of the payment update framework. The section discusses the policy backdrop and broader Medicare spending influences described by CMS.

3. SMS data, work RVUs, and specialty impacts

   Covers CMS’s use of survey data, the work RVU review process, and specialty-level payment impacts. It also addresses appealed work values and interim valuation decisions for selected services.

4. Practice expense RVUs and refinement process

   Reviews the transition to fully resource-based practice expense RVUs and CMS comments on data sources and future refinements. It also discusses related practice expense policy issues raised in the final rule.

5. New billing opportunities from BIPA

   Summarizes Medicare coverage and billing updates tied to expanded services under BIPA. Topics include telemedicine, mammography, glaucoma screening, pelvic exams, and colonoscopy coverage changes.

6. Anesthesia and pain management services

   Reviews anesthesia payment updates, including conversion factor changes, base unit revisions, new anesthesia code values, and pain management code payment information. The section also notes ongoing CMS review activity in this area.

7. Codes for new technologies

   Addresses CMS handling of newer CPT code categories used to track emerging technologies and performance measurement. It explains the general treatment of these code categories in Medicare payment policy.

8. Miscellaneous payment and coverage updates

   Covers additional Medicare coding and payment updates, including bioimpedance, inter-facility transport, nurse practitioner billing, pathology policy timing, care plan oversight, home health certification, and ASC site-of-service issues.

9. Update of Stark II self-referral code list

   Lists additions and deletions to the code set used for Stark II designated health services. It reflects the annual update process described in the article.