Medicare Finalizes 2024 Physician Fee Schedule Updates for 2024

On November 2, the Centers for Medicare & Medicaid Services (CMS) finalized calendar year 2024 (CY 2024) policy changes for Medicare payments under the Physician Fee Schedule (PFS), and other Medicare Part B issues. Under CY 2024 PFS, pay rates will be reduced by 1.25 percent and the PFS conversion factor will decrease by 3.4 percent to $32.74. CMS is also finalizing significant increases in payment for primary care and other kinds of direct patient care. Marriage and family therapists (MFTs) along with mental health counselors are eligible to receive payment for mental health services and substance abuse treatment, including services furnished in Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs). Payment for telehealth services furnished in RHCs and FQHCs is extended until December 31, 2024. In addition, CMS has created two new billing codes to describe services performed by auxiliary personnel including community health workers (CHWs) under the general supervision of the billing practitioner. The final rule is effective January 1, 2024.