Budget Bill Would Peg Physician Pay to MEI; Might Mean Raise in 2026

The Senate is considering a budget bill, passed by the House of representatives in May, that proposes changes to the physician fee schedule conversion factor (CF). McCarter & English Partner Khaled Klele spoke with Part B News about the potential for relief next year. “Even if pinning the conversion rate for the physician fee schedule to the Medicare Economic Index becomes law, it may not lead to increased rates, considering that Medicare is still constrained by budget-neutrality requirements,” Khaled said, referring to features of the Omnibus Budget Reconciliation Act of 1989 that keep Medicare expenditures on a tight fiscal leash.