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Fee Cut Looming Again

Despite some activity in the House today, no legislation will be signed prior to the May 31 extension of existing Medicare payments. The 21% reduction is scheduled to go into effect on June 1, 2010. The Senate and House are on Memorial Day recess until June 7, 2010.

CMS instructed contractors to once again hold all claims for ten business days providing time for Congress to resolve the fee schedule issue.

You may, however, notice some small changes in your fee schedule due to a retroactive adjustment of the 2010 conversion factor, GPCIs, and some RVUs as required by the Patient Protection and Affordable Care Act (PPACA). Contractors have published new fee schedules on their websites indicating valid fees for January 1 – May 31, 2010. Retroactive adjustments are pending and it is unclear if, when, and how contractors will implement the corrections.

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