2011 MPFS Final Rule Reduces Pay Rates

The 2011 Medicare Physician Fee Schedule (MPFS) final rule also updates payment policies and rates for physicians’ services furnished in 2011, with a significant drop in rates. The conversion factor used to calculate Medicare payments in 2011 will be $25.5217, down a staggering 30.78% from the current rate of $36.8729. On November 19, 2010 the Senate has delayed the 23-percent cut scheduled to have taken effect Dec. 1. Now the U.S. House must act on the legislation passed by the Senate before the December 1 deadline to prevent the 24.9 percent reduction. Barring Congressional intervention, the final rule reduces payment rates for physicians’ services under the Sustainable Growth Rate (SGR) formula. These payment rates are currently scheduled to be reduced under the SGR system on Dec. 1, 2010, and then again on Jan. 1, 2011.