President Bush signed into law the Medicare, Medicaid and SCHIP Extension Act (P.L. 110-173), and some of the bill’s provisions will affect Medicare payments to anesthesiologists.
The legislation provides a temporary 0.5 percent increase to Medicare payments for physicians for dates of service through June 30, 2008. This increase, combined with the 32 percent anesthesia work value increase (25 percent overall anesthesia conversion factor increase) secured by ASA via the RUC process late last year, brings the 2008 anesthesia conversion factor to $19.9698. This is up from $16.19 in 2007.
However, unless Congress intervenes, all of medicine will see a 10.1 percent Medicare payment cut beginning on July 1, 2008. The cut was scheduled to take effect on Jan. 1, 2008, but P.L. 110-173 replaced the cut with the short-term 0.5 percent increase.
Because the change to the physician update may affect a physician’s decision to participate in Medicare, CMS is extending the enrollment period for an additional 45 days. The participation decision period now runs through Feb. 15, 2008.
Other provisions of the Medicare, Medicaid and SCHIP Extension Act include:
* Extension of the application of the 1.0 floor on the work geographic index from January 1, 2008 through June 30, 2008.
* Extension of the 5 percent Medicare incentive payment to physicians practicing in physician scarcity areas from January 1, 2008 through June 30, 2008.
* Extension of the exception to the 60-day limit on substitute physicians for physicians called to active duty in the Armed Forces for services furnished from January 1, 2008 through June 30, 2008.
