Reimbursement
Conversion Factor Since 1998
Our Conversion Factor is below what is was in 1998. Considering inflation - which the conversion factor is SUPPOSED to account for, reimbursement is half of what it should be. We are paid HALF OF WHAT WE SHOULD BE.
We don't keep up - its a political problem
We are the only Medicare recipients who do not automatically get an inflation based adjustment. Since 2001 office inflation is at least 50% but our reimbursement has gone down (since the last data point we've had 2 reductions bringing us under the 2002 mark
Conversion factor manipulation
The conversion factor should keep up with inflation, but just the opposite has happened. This why we have to focus on the conversion factor
Definitions
CMS is required, by law to set a conversion factor that maintains budget neutrality (see below) NOT one that fairly pays Doctors. It should mirror inflation but has not for over 20 years. That is a political problem that we can and must fix
Physicians are paid for the resources required to deliver those services. The problem is that Medicare has is bound by budget neutrality (see below). To do that they drive down the conversion factor.
