CMS Announces 2023 Announces Finalized Medicare Physician Fee Schedule Conversion Factor
On January 5, 2023, CMS released updated national Medicare physician payment files that incorporate the changes in the Consolidated Appropriations Act of 2023 that was passed at the end of December 2022 and off set previously announced physician reimbursement reductions.
Specifically, in response to concerted advocacy by organized medicine, Congress reduced the 4.5% cut to Medicare physician payment by increasing the 2023 conversion factor by 2.5%. The updated 2023 Medicare physician payment schedule conversion factor will be $33.8872. The previously finalized 2023 conversion factor was $33.0607. The 2022 conversion factor was $34.6062 and as such the 2023 conversion factor is still approximately 2.5% lower than 2022.
Unlike in previous years, there is not the chance that the conversion could possibly be subject to reductions in the middle of 2023 due to expiring legislation.
Practices can use the $33.8872 rate for their 2023 rate going forward.