07/11/2024
HHS Releases 2025 Medicare Physician Fee Schedule Proposed Rules—Reductions Continue
On July 10, the U.S. Department of Health and Human Services (HHS) released the 2025 Medicare Physician Fee Schedule Proposed Rules. In the press release, HHS stated the following related to 2025 rates:
Because of factors specified in law, average payment rates under the PFS are proposed to be reduced by 2.93% in CY 2025 compared to the average amount these services will be paid for most of CY 2024. The change to the PFS conversion factor incorporates the zero percent overall update required by statute, the expiration of the 2.93% increase in payment for CY 2024 required by statute, and a small adjustment necessary to account for changes in valuation for the work RVU portion of particular services. This amounts to a proposed estimated CY 2025 PFS conversion factor of $32.36, a decrease of $0.93 (or 2.80%) from the current CY 2024 conversion factor of $33.29.
OSMA will be working with the AMA and other state and federal physician groups to review the rules in more details and will be advocating for legislative action to reverse these cuts and include increases. Stay tuned for more information about how you can help take action in the weeks ahead!