BC Advantage - 2008 Issue 3

Medicare Physician Fee Changes in 2008

Physician should be aware of some changes to the Medicare Physician Fee Schedule, which pays for over 7000 physician services performed for Medicare beneficiares across all places of services.The MPFS is calculated from three separate relative value units (RVUs) for each procedure code. These RVUs represent the work, practice expense, and malpractice costs for each procedure relative to a standard procedure valued at 1 RVU. The work RVUs comprise over 50% of the final fee, and in 2008, the most recent Five Year Review data were used to update them. Due to these changes, a budget neutrality factor...

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