Bill Passed to Increase Physician Payments under Medicare Physician Fee Schedule (MPFS) for 2022
In response to both physician and hospital groups lobbying to stop the scheduled Medicare payment cuts, Congress introduced a Bill on December 6, 2021, to increase physician payments under the Medicare Physician Fee Schedule (MPFS) for 2022. It was passed by the Senate and signed into law on December 11, 2021. This bill, entitled “The Protecting Medicare and American Farmers from Sequester Cuts Act” includes:
- Continued suspension of 2% sequestration through March 31, 2022 (no payment adjustment during this time period). This is the monetary deduction Medicare takes before any service or procedure is reimbursed.
- Sequestration will be 1% rather than the standard 2% starting April 1, 2022, through June 30, 2022.
- Sequestration in FY 2030 will be 2.25% for the first 6 months and 3% for the last 6 months.
- Increase of conversion factor (CF) – this is the monetary factor that converts the RUVs into dollar amounts for payment. The 2021 CF has been increased by 3% for services provided on or after January 1, 2022, and before January 1, 2023, by 3%. The CF is now $34.6062 for 2022.
- PAYGO Sequestration – The statutory Pay As You Go Act of 2021 requires certain new legislation to not increase the federal budget deficient or reduce the surplus. If this happens, the reduction or increase must be offset by increased revenue or reduced spending in other areas. The new law specifies a 4% deduction beginning in 2023 (not 2022), if needed.
To read the Bill in its entirety, click here.
