Hart Health Strategies Comparison of the CY 2024 Medicare PFS Proposed and Final Rules

Hart Health Strategies Comparison of the CY 2024 Medicare PFS Proposed and Final Rules

On November 2, 2023 the Centers for Medicare and Medicaid Services (CMS) released the Calendar Year (CY) 2024 Medicare Physician Fee Schedule (PFS) final rule, updating payment rates for PFS services, the Quality Payment Program (QPP), and other key policies impacting providers paid under the PFS. The finalized policies are effective beginning January 1, 2024. 

Of note, the final CY 2024 MPFS conversion factor is set at $32.7442, which is down approximately 3.4 percent from CY 2023. The reduction is the result of several factors, including the statutory base payment update of 0.00 percent, the reduction in assistance provided by the Consolidated Appropriations Act, 2023 (CAA, 2023; from 2.5 percent for 2023 to 1.25 percent for 2024), and budget neutrality adjustments of -2.18 percent resulting from CMS’ finalized policies (p. 1948). For quick reference, CMS’ Specialty Impact Table (Table 118) includes estimated impacts in Medicare payments to specialties based on the policies outlined in the final rule (which does not include the reduction in assistance under the CAA, 2023). CMS also provided an additional impact table, Table 119, that includes a facility/non-facility breakout of payment changes.

Handout: CY 2024 Medicare Physician Fee Schedule: Quality and Alternative Payment Model Provisions

Handout: CY 2024 Medicare Physician Fee Schedule: Payment and Other Provisions