CMS considers 21.5% physician pay cut in 2010

The Centers for Medicare and Medicaid Services (CMS) would cut physician payments by 21.5% under its proposed 2010 Medicare Physician Fee Schedule (MPFS).

CMS proposes to remove physician-administered drugs from the definition of "physician services" in the calculation of the sustainable growth rate, or SGR. The statutory formula used to determine the physician payment update will result in a 2010 conversion factor of $28.32 and the projected pay cut, CMS said.

In its proposed rule, the agency took pains to communicate that this cut may not be finalized: "[We] may choose not to finalize the proposal described above or may choose to modify the proposal in the final rule, consistent with rulemaking principles, in light of new policy developments, new information, or changed circumstances."

The pay cut would have a huge negative affect, according to Pam Kassing, senior director of health economics and policy at the American College of Radiology (ACR) in Reston, VA.

"[This physician payment cut] will have a terrible additional impact if Congress doesn't override it by the end of the year," she said.

CMS is taking comments on the proposed rule until August 31 and will publish a final rule November 1.

Related Reading

CMS pitches 90% use rate in proposed 2010 MPFS rule, July 1, 2009

Radiology rallies to fight more reimbursement cuts, July 1, 2009

ACR lobbies against RBMs, utilization rate changes, June 26, 2009

Siemens' Miller defends imaging in House testimony, June 26, 2009

U.S. House bill would increase utilization factor to 75%, June 23, 2009

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