tci Medicare Compliance & Reimbursement - 2006 Issue 16

REIMBURSEMENT: Get Ready--CMS Could Slash Physician Payments To The Bone Next Year

A 4.6-percent cut awaits providers in 2007, CMS estimates.The Centers For Medicare & Medicaid Services says the conversion factor for physician payments in 2007 will be 36.1542--4.6 percent lower than this year's rate--unless Congress steps in again.Writing this off as another false alarm would be easy--except that Medicare did cut physician payments 5.4 percent in 2002. Every year since then, CMS has threatened another cut.The law requires CMS to cut physician payments each year if spending grows faster than the overall economy, and the agency has predicted sharp cuts every year until...

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