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Medicare proposal cuts physician payment by 5.1% in 2007

Physician Practice Advisor, August 16, 2006

The Centers for Medicare & Medicaid Services (CMS) has released a proposed rule for the 2007 Physician Fee Schedule that cuts payments for physician-related services by more than 5% next year, according to a CMS press release. The new proposal is in addition to the proposed revisions to the work relative value units (RVUs) and proposed changes in the methodology for calculating practice expense RVUs released in a separate proposed notice in the June 29 Federal Register.

In addition to changes to payments for physicians' services, the proposed rule expands access to preventive services such as screening for abdominal aortic aneurysms for certain individuals and screening for colorectal cancer. The rule also expands the number of beneficiaries eligible for bone mass measurement. CMS will accept comments on the proposed rule until October 10, and will publish a final rule later this fall. The new policies and payment rates will take effect January 1, 2007.

CMS also recently released proposed changes to the payment system for services provided in ambulatory surgery centers (ASCs). The two most significant components to this rule include a revised payment system that would take effect January 1, 2008, and an expansion of the list of Medicare-approved ASC procedures.

Click here to read the CMS press release.

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