Medicare News
| For Immediate Release: | Contact: |
| Wednesday, August 01, 2001 | CMS Office of Public Affairs 202-690-6145 |
For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov. |
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CMS PROPOSES PHYSICIAN FEE PAYMENT CHANGES FOR 2002
Proposed changes to the Medicare physician fee schedule for calendar year 2002, as well as proposals for other policies affecting Medicare Part B payment for physicians and other providers, were announced today by the Centers for Medicare & Medicaid Services.
The fee schedule specifies payments to physicians for more than 7,000 services and procedures ranging from routine office visits to cardiac bypass surgery. In 2002, Medicare will spend approximately $45 billion on physician services.
Included in this year's rule are proposals for reimbursing expanded Medicare preventive services mandated by the Medicare, Medicaid and SCHIP Benefits Improvement Act of 2000. This includes payment, effective Jan. 1, 2002, for annual glaucoma screenings for persons at high risk for glaucoma. Medical nutrition therapy provided by a registered dietitian or qualified nutrition professional for individuals with diabetes or renal disease will also be reimbursed for the first time.
In addition, this rule includes proposals to increase payment for screening mammography services, as well as provide payment for certain new technology mammography services. This increase will improve beneficiary access and address concerns of the medical community that the current payment for these services is too low.
This proposed rule also completes the four-year phase-in of the practice expense component of physician fees. In 2002, all components of the fee schedule (physician work expenses, malpractice expenses and practice expenses) will reflect the relative costs of resources used in providing physician services. Physician fees in 2002 will also be affected by a statutorily required five-year review of the physician work component of the fee schedule. The proposed work values resulting from this review were published in a separate proposal in the June 8 Federal Register.
Before implementing the fee schedule in 1992, Medicare paid physicians based on their individual charges. The fee schedule was created to relate payments to the resources physicians use to provide a service rather than what physicians charge for a service. All changes in current payment amounts are required by law to be budget neutral. As a result, increases in payment for some services must be offset by decreases in payment for other services.
The impact of the two proposed rules on specialties is projected to be modest. For example, the specialties of general surgery and pathology are slated for increases of 4 and 3 percent, respectively, while ophthalmology is slated for a decrease of 1 percent.
The proposed rule will be published in the August 2 Federal Register. CMS will accept comments on the proposed rule until October 1, 2001. A final rule will be published in the fall.
