The Problem

The 2025 Medicare Physician Fee Schedule (PFS) Final Rule published on July 10, 2024, would impose yet another round of significant cuts to office-based interventionalists. Key drivers of these cuts within the 2025 PFS Proposed Rule include: 

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• Conversion Factor Cut.  A carry-over 2.8% cut to the conversion factor from the 2021 PFS E/M policy (which has been phased by Congress since the policy was implemented).  When finally phased-in, the 2025 conversion factor is projected to be $32.3433, a cut of more than 10% from the $36.09 conversion factor in 2020.
   

• Clinical Labor Cuts.  The fourth year of clinical labor cuts to office-based interventional relative value units (RVUs) stemming from the phase-in through 2025 of the 2022 PFS clinical labor policy that cuts some interventional codes by another 4% in 2025.

PFS physician payments equal conversion factor * RVUs.  As a result, certain office-based interventional services will again be cut by another 6 - 7% in 2024 alone.  These year-over-year cuts are being implemented without regard to patient outcomes, actual PFS provider resource needs, or any other rationale policy.