The final 2023 Medicare physician fee schedule that CMS released Nov. 1 confirmed a harsh reality: Medical groups will see a 4.5% cut to the conversion factor (CF) on Jan. 1, 2023, as the CF falls to a rate of $33.06 and sends some charges under the Part B payment system tumbling.
The $33.06 CF rate comes in $1.55 less than the CY 2022 rate of $34.61. The anesthesia CF also will drop 4.4% in 2023, taking a cut from the CY 2022 rate of $21.56 to $20.61 in CY 2023, a reduction of $0.95 year over year.
Not all specialties will bear the brunt of the CF reduction equally, as CMS’ yearly effort at revising misvalued codes alters the contribution of relative value units (RVU) to the final payment picture. Final fees are a product of RVU inputs — practice expense, malpractice and work — multiplied by the CF.