2024 “Updated Final” Medicare Fees

As you may have heard, federal legislation taking effect March 9, 2024 for the rest of 2024 included an update to the Medicare Conversion Factor (CF), which will affect reimbursement for Part B services including services provided by psychologists. I previously reported “final” fees that went into effect January 1, based on the CF reported in December 2023.

The CF went from the 1/1/24 “final” value of $32.74 to $33.29 beginning 3/9/24, a 1.68% increase over the value announced at the end of 2023.

The $33.29 CF remains 1.78% below the 2023 CF of $33.89. 2024 marks the first time since 1992 when the CF was first used to set prices that the CF has been reduced four years in a row, from 2021-2024. The CF has declined by 7.8% since 2020, without taking into account the effects of inflation.

Here is an update of estimated National Payment Amounts (NPA) for March 9 through Dec. 31, 2024, for the ten services most frequently provided by psychologists in Medicare, and group therapy. The table assumes Relative Value Units (RVUs) will remain as reported as of 12/31/2023. As these are NPAs, values will vary based on geographic price cost index (GPCI) variables that will be applied the the RVUs in different locales, though the pattern of 2023-2024 increases or decreases should be similar.

National Payment Amounts, Top Services Provided by Psychologists in Medicare, 2020-2024

                                                                   (Non-facility rates)

As of this writing, CMS has not updated the searchable fee schedule to include the new CF. Reports include that CMS may update the fee schedule “no later than April 9.”

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