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Final Medicare 2004 rule maintains physician fee cut
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The final 2004 Medicare Fee Schedule ruling maintains the 4.5% cut in physician reimbursement rates that was seen in earlier versions of the rule, the American Academy of Ophthalmology announced in a press release.
The AAO, which obtained an advance copy of the final Medicare ruling, said the cut was introduced because of flaws in the sustainable growth rate formula used to calculate next year’s expenditures.
According to the final ruling, the conversion factor for 2004 will be $35.13, down from $36.78 in 2003, the AAO said. The new fees will become effective Jan. 1, 2004.
The AAO is urging its members to call on Congress to derail the cuts in reimbursement. They note that provisions in the Medicare reform bills that are currently in conference committees between the House and Senate could guarantee a minimum increase of 1.5% in physician fees for 2004 and 2005. Congress is set to adjourn later this month.
The scheduled cut is in addition to a 5.4% cut in 2002, according to an American Medical Association press release. The AMA is also calling upon members to make their views on the reductions known to elected representatives.