The Medicare physician fee schedule (PFS) proposed rule for 2021 includes changes that will reduce the fee schedule conversion factor 11%, the AMA said.

The proposed rule, released by the Centers for Medicare and Medicaid Services on Aug. 3,  includes significant increases in payments for office visits, as sought by the AMA. However, because of budget neutrality legislation, it also includes adjustments to evaluation and management coding, payment policies and other changes that result in a reduction of almost 11% in the fee schedule conversion factor.

“The AMA strongly urges Congress to waive Medicare’s budget neutrality requirement for the office visit and other payment increases,” said AMA President Susan R. Bailey, MD. “Physicians are already experiencing substantial economic hardships due to COVID-19, so these pay cuts could not come at a worse time.”

Read the AMA’s summary of the 2021 proposed rule here >>

The text of the proposed rule can be accessed here >> 

The AMA’s media release on the proposal can be accessed here >>