Physicians Face Medicare Reimbursement Rate Cuts for 2025

Overall Medicare payments to physicians and clinicians will be reduced an average of 2.93% next year under a final rule released Friday by the Biden administration.

In the 2025 Medicare Physician Fee Schedule rule (RIN 0938-AV33), the multiplier, or “conversion factor,” used to determine provider reimbursement in traditional Medicare would fall 94 cents, or 2.83% to $32.35 next year from $33.29 in 2024, the Centers for Medicare & Medicaid Services reported.

“The change to the PFS conversion factor reflects the 0% update required by statute for CY 2025, the expiration of the 2.93% temporary increase in payment amounts for ...