Tag: CMS

Will Congress Stop Medicare Cuts?

Posted on by Brian Casey

Radiologists find themselves once again in a familiar position, facing CMS cuts in Medicare and Medicaid physician payments for 2025. A new analysis by revenue cycle management company Healthcare Administrative Partners details the impact of the reductions, as well as other reimbursement changes set to take effect next year. 

CMS has been driving down radiology reimbursement for years, a trend widely seen as part of the agency’s effort to shift funding from medical specialties to primary care. 

  • That’s having an impact on physician pay, as a study last week found that private-practice diagnostic radiologists have seen inflation-adjusted salaries decline at a -1% annual rate since 2014. 

That trend is set to continue in 2025, with CMS publishing its final rule for the Medicare Physician Fee Schedule that affirms most of the changes it proposed in July. In the new article, HAP’s Sandy Coffta unpacks the changes, which include … 

  • A new conversion factor of $32.3465 (down from $33.2875).
  • Payment reductions of -2.8% for radiology and nuclear medicine, and -4.8% for interventional radiology.

But not all of the changes are negative. Other 2025 policies that affect radiology include …

  • Reimbursement for CT colonography for Medicare beneficiaries at a rate of $108.68 for the professional component.
  • New codes for reporting MRI safety procedures.
  • New quality category measures in the Merit-based Incentive Payment System.

CMS proposed similar cuts last year, but Congress swooped in at the last minute to roll them back with the Consolidated Appropriations Act, which applied a positive 2.93% upward adjustment. 

  • Several bills in Congress now would likewise stave off the 2025 reductions (H.R. 2474 and H.R. 10073), but time is running out to pass them before the current Congressional session expires on January 3, 2025. 

The Takeaway

Will Congress once again ride to the rescue and stave off Medicare reimbursement cuts, as it did a year ago? Or will things be different this time, given the political turbulence that’s shaking Washington, DC? We’ll find out in a few weeks.

Patients Unclear on Imaging Costs

Posted on by Brian Casey

A new study in Health Policy and Technology shows that patients are surprisingly unclear on how much their imaging exams will cost them. Researchers found that few knew their imaging facilities had price estimator tools and even fewer were aware of their out-of-pocket estimates.

The U.S. government has been trying to make healthcare more transparent and understandable for patients through a variety of new rules it’s implemented in recent years, such as “information blocking” rules that prevent providers from withholding patient data.

  • In 2021, CMS required health systems to notify patients of out-of-pocket expenses and make available tools for estimating prices. 

But how knowledgeable are patients about these initiatives? 

  • Researchers from UC Irvine and the University of Michigan surveyed 423 patients scheduled for CT, PET/CT, or MRI scans in Southern California to find out how much they knew about their out-of-pocket costs. 

Researchers discovered that …

  • Only 11% of patients were aware of their out-of-pocket estimates before getting their scans.
  • Only 17% knew their imaging facilities had price estimator tools.
  • 53% said their illness has been a financial hardship, but only 34% were worried about their out-of-pocket costs for imaging.
  • No patient used the hospital’s estimator tool.
  • Patients were less likely to know their out-of-pocket costs if they had lower income (<$50,000), more financial hardship, and no comorbidities. 

The results show that, two years after out-of-pocket transparency rules went into effect, patients are still unclear on their imaging costs. 

  • This is a major problem due to the high variation in imaging prices that’s been documented in other studies, such as 2023 research that found MRI scans ranging in price from $878 to $3,403.

More outreach could help patients better understand costs. 

  • Such outreach could be made through automated calls or even messages through patient portals prior to their exams.

The Takeaway
The new study – when coupled with recent research on patient reports – shows that radiology still has a ways to go when it comes to keeping patients informed about their imaging exams. Getting patients more involved not only will have economic benefits, but could also help patients participate in their own care.

Unpacking 2025 Medicare Changes

Posted on by Brian Casey

Here we go again. CMS has once again proposed cuts in Medicare and Medicaid reimbursement, and the healthcare community is once again rallying to try to stave them off. 

CMS last month released its proposed reimbursement changes for 2025, and there were a few victories for radiology. 

  • CMS finally agreed to pay for CT colonography, and also agreed to unbundle payments for PET radiotracers from the PET scan itself.

But CMS also proposed changes in the Medicare Physician Fee Schedule (MPFS) conversion factor that continue the slow drip of reimbursement reduction for physicians.

  • The agency said the proposal would result in no change for radiology, but a deeper dive reveals that’s not the case. 

For example, the analysts at revenue cycle management firm Healthcare Administrative Partners have reviewed the MPFS changes, calculating that if Congressional adjustments are factored in, the outlook is quite different…

  • Interventional radiology will see a -5.8% reduction in the imaging center global fee and a -1.8% drop in the hospital professional fee, for a combined decline of -4.8%
  • The numbers for radiology and nuclear medicine are -3.8% for imaging centers and -1.8% for hospitals, for combined declines of -2.8%

It may seem like -2.8% isn’t a huge cut, but it continues years of steady declines in Medicare reimbursement (HAP notes that the Medicare physician fee schedule has dropped -10% in the last 10 years).

  • And as anyone in healthcare knows, the costs that healthcare practices face have only gone up over that period.  

There’s always the chance that Congress will come to the rescue, as it did when it passed the Consolidated Appropriations Act of 2024 – indeed, professional medical groups led by the AMA published a letter last week urging lawmakers to reform CMS’ rate-setting system in several ways …

  • Enact an annual payment update tied to inflation
  • Eliminate the requirement that changes in payments be budget-neutral
  • Overhaul the Merit-based Incentive Payment System (MIPS)
  • Make modifications to Alternative Payment Models

The Takeaway

The annual ritual in which CMS proposes sharp cuts in Medicare reimbursement only to have Congress lift them at the last minute is a sort of public policy kabuki dance in which the outcome is practically preordained. Medicare reform is badly needed to end this cycle and put physicians on firmer footing so they can focus on what’s important: caring for patients.

Doctors Work Harder for Less

Posted on by Brian Casey

Medicare reimbursement to physicians per beneficiary has declined over the last 16 years, with radiologists among the biggest losers. That’s according to a new study by the ACR’s Harvey L. Neiman Health Policy Institute, which confirms what many physicians already knew: they are working harder for less money.

It’s no secret that the US government has been struggling to rein in healthcare costs for decades. 

CMS has a number of tools at its disposal for controlling Medicare and Medicaid costs, one of which is the relative value unit (RVU) scale. 

  • RVUs – when multiplied by monetary conversion factors – basically set the amount of money the agency pays physicians per unit of work, with CMS typically reducing the conversion factor when it needs to cut Medicare spending. 

In the new study in the journal Inquiry, Neiman HPI researchers analyzed trends in RVU and conversion factor levels per Medicare beneficiary from 2005 to 2021, analyzing changes to calculate how much work providers have to do to deliver a unit of care. Findings included …

  • Reimbursement per Medicare beneficiary after inflation adjustment fell 2.3% for physicians as a whole
  • Radiology saw one of the biggest declines in MPFS reimbursement per beneficiary, ranking 31st on a list of 39 medical specialties, with a 25% decrease
  • Reimbursement has risen 207% for non-physician practitioners

What’s driving the declines? The Neiman HPI researchers identified the federal government’s budget neutrality rules for Medicare, which stipulate that increases in one area have to be offset by declines elsewhere.

The Takeaway

The new findings confirm what many physicians have suspected – they are not only working harder for less, but non-physician practitioners seem to be getting a bigger piece of the pie. Combined with a recent report showing that radiologist salaries didn’t keep pace with inflation in 2023, it’s not a pretty picture. 

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