The Centers for Medicare and Medicaid Services (CMS) has increased the Medicare Physician Fee Schedule (PFS) conversion factor by 1.68% – from $32.74 for services rendered Jan. 1 through March 8 to $33.29 for services rendered March 9 through Dec. 31 – in response to the Consolidated Appropriations Act, 2024 signed into law on March 9.

The Consolidated Appropriations Act, 2024 included several health policy updates, including a partial fix for Medicare cuts imposed by the 2024 Medicare PFS. The update equates to a 1.25% fix for all of 2024 and avoids the need to reprocess claims. The agency has since updated payment files and instructions accordingly.

The College will continue to advocate for long-term, sustainable Medicare payment reform in the coming months, turning its attention toward the Strengthening Medicare for Patients and Providers Act (H.R. 2474). This legislation would update the single Medicare PFS conversion factor to be equal to the estimated percentage increase in the Medicare Economic Index (MEI), incorporating annual inflationary updates to the Medicare physician payment system.

MEI-baselined annual updates are viewed by the ACC as an important step forward in reducing financial uncertainty for practices and improving the delivery of care across the U.S., particularly for senior patients as well as those living in rural and underserved areas. ACC members can take action by urging their members of Congress to cosponsor H.R. 2474 here.