Gastroenterology Coding Alert

Reimbursement 'Heads-up!':

Medicare Cuts Conversion Factor 4.4 Percent for 2006

You can expect your payments from Medicare to shrink in 2006.

CMS released its 2006 Physician Fee Schedule in early November, and it includes an approximate 4.4 percent reduction in the Medicare conversion factor, which--along with the relative value units (RVUs) assigned to individual codes under the fee schedule--determines payments to Medicare providers.

The number you-ve been waiting for: Without congressional action, the conversion for 2006 will equal 36.1171 (down from 37.8975 in 2005).

Dollar-and-cents example: The 2005 fee schedule assigns 4.43 physician work RVUs for 45380 (Colonoscopy, flexible, proximal to splenic flexure; with biopsy, single or multiple). In 2005, this would equal payment of $167.89, on average (4.43 RVUs x 37.8975 conversion factor). Assuming no RVU changes for CPT 45380 in 2006, average payment for the procedure would fall to $160 (4.43 x 36.1171 conversion factor), or almost $8 less for the same physician work.

There's hope: Physician advocates hope that Congress, through the budget reconciliation act, will act  to stem the reduction, but lawmakers have yet to tackle the issue.

Keep reading: Gastroenterology Coding Alert will be the first to alert you if Congress takes action to revise the 2006 conversion factor.

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