On March 8, President Biden signed into law a legislative package that includes an increase of 1.68% to Medicare physician payment, effective immediately, through the end of 2024. In November 2023, the Centers for Medicare & Medicaid Services (CMS) issued a physician fee schedule final rule that finalized the 2024 conversion factor at $32.7442, marking a 3.4% decrease in physician reimbursements.

This reduction primarily stems from several factors: a statutory 0% update scheduled for 2024 under the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), a 2.18% budget neutrality adjustment linked to the implementation of a new evaluation and management (E/M) add-on code (G2211), and the expiration of 1.25% of the 2.5% positive adjustment to the conversion factor implemented by Congress in 2023. After ongoing advocacy efforts from the AASM, American Medical Association (AMA), and many other health care organizations and medical societies, Congress passed the partial payment fix on March 8, allowing for the 1.68% increase to Medicare physician payment, which partially offsets the 3.4% cut to the Medicare conversion factor that took effect Jan. 1.

Despite this small, partial victory, the AASM will continue to advocate for physician payment reform on behalf of our members. Questions about the physician payment update can be sent to coding@aasm.org.