CMS finalized the 2011 Medicare Physician Fee Schedule -- and the outlook is not good for your practice next year. The conversion factor used to calculate Medicare payments in 2011 will be $25.5217, down a staggering 30.78% from the current rate of $36.8729.

To give you a quick example of how that impacts you, national payment for 99213, the most commonly billed code, would drop to an estimated $51.81 from the current $66.74, according to the fee schedule.

Today is Election Day, so a lame duck session of Congress will need to do two things - act before Dec. 1 to delay a 23% cut, then again by Jan. 1 to stop an additional 7% cut. Otherwise, your Medicare reimbursements will drop 30% next year. The AMA and other physician associations are lobbying for a temporary payment fix, with the hope that the next Congress will permanently fix the reimbursement formula next year.

AMA President Cecil Wilson, MD, outlined to Kaiser Health News the AMA's plan for lobbying Congress to delay scheduled cuts to Medicare reimbursements on Dec. 1 and Jan. 1. The AMA and other physician groups will need the cooperation of a lame duck session of Congress to prevent a 30% decrease in payments over the next couple months.

"Our strategy is to say to Congress, 'What we want from you is to stabilize Medicare payments to physicians for the next 13 months to get us through 2011,'" Dr. Wilson says. "And then that will give us an opportunity working with the new Congress to develop a means of getting rid of the formula, putting in a formula or a payment mechanism that recognizes increased costs of care."

This is the same strategy the AMA has employed for awhile now and it hasn't work. The sustainable growth rate (SGR) budgetary mechanism responsible for the cuts has been a problem for years. Permanently fixing the formula will now cost $276 billion and would be difficult for budget hawks in Congress to offset.

Click here for more on SGR cuts

You can expect the finalized 2011 Medicare Physician Fee Schedule to be out any day now. Be sure to check back with www.partbnews.com to get the latest news and analysis of the new fee schedule when it's released.

Also, check out our webinar "New Billing Opportunities under the 2011 Medicare Physician Fee Schedule" with Betsy Nicoletti, CPC, on Nov. 17. You only have a few weeks to update your coding and comply with new billing rules, so let Betsy help you understand how the finalized rule impacts your practice.

Not all of your peers are planning to take the drastic steps in response to the Medicare pay cut that were suggested by a recent survey. The survey of 2,860 practices, conducted by the Medical Group Management Association (MGMA), found that a stunning 78% said they would alter their policy on Medicare patients if the pay cut goes through.

The breakdown was more measured, with 49.5% saying they won't accept new Medicare patients and 27.5% saying they'll stop treating Medicare patients entirely. But another survey of 1,261, administered in September by Physicians Practice, found the trend nearly reversed (read more on practices cut Medicare patients in response to pay cuts) ...

The Office of the National Coordinator (ONC) for Health Information Technology (HIT) reports the Drummond Group and Certification Commission for Health Information Technology (CCHIT) have certified 54 electronic health record (EHR) products. Physician practices must use a certified EHR product to meet meaningful use standards under the EHR Incentive Program.

Here is the list of certified products in alphabetical order. 

Click here to see the list of certified EHR products