Proposed Medicare 2017 Reimbursement Schedule Hits Biopsy Payments; Digital Pathology Payments Up

The Proposed Medicare Physician Fee Schedule (MPFS) for 2017 includes a 15% cut to the technical component for CPT 88305. In a nutshell, the Proposed MPFS for 2017 includes some significant cuts to technical reimbursement for several key pathology codes, while proposed reimbursement for most professional services is little changed. CMS is accepting comments on the Proposed MPFS through September 6, 2016. Final rates are expected to be announced in October and become effective January 1, 2017. CMS says the proposed 15% reduction to CPT 88305-TC relates to an update that reflects reduced costs for eosin stain supplies. For similar reasons, CMS has proposed significant TC rate reductions for 16 other pathology codes. Among other significant proposed changes are 19% reductions for the flow cytometry codes CPT 88184, 88185 and 88189. Further significant reductions to flow cytometry are expected in 2018 as well. On the positive side, global reimbursement for digital pathology (CPT 88361) has a proposed rate hike.