Congress Must Pass Legislation by the End of the Year to Avoid Steep Medicare Cuts
Medicare providers are facing significant reimbursement cuts starting January 1, 2023. The 2023 Medicare Physician Fee Schedule (PFS) proposal jeopardizes the financial stability of many oncology practices by proposing a cut to the Medicare conversion factor of approximately 4.5%. The rule is expected to be finalized in November 2022.
This steep cut to physician reimbursement—which impacts all services across the fee schedule—is the result of:
- A scheduled 0%, or neutral, PFS update for fiscal year 2023
- A 1.5% cut required by budget neutrality rules (stemming from changes to work relative value units)
- Expiration of the positive 3% payment adjustment Congress passed in December 2021
These cuts are compounded by the 2% sequestration cut that went back into effect on July 1, 2022; and a 4% pay-as-you-go (PAYGO) cut, triggered by the passage of the American Rescue Plan, scheduled to begin on January 1, 2023.
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