2009 Medicare Physician Fee Schedule Hurts Echo Payments   

Practices that perform in-office echocardiography services will likely be negatively affected by the 2009 Medicare Physician Fee Schedule, although the impact will vary greatly depending on the mix of services provided.

In 2009 physicians will use a new CPT code, 93306, to report transthoracic echocardiography with spectral and color flow Doppler echocardiography. Echocardiographers previously reported this study with a combination of three CPT codes (93307, 93320, and 93325). Transthoracic echocardiography without spectral or color flow Doppler will continue to be reported with 93307 and 93320 and 93325 remain available as add-on codes for echocardiography services other than 93307. In addition, physician practices that provide both the echocardiography and stress test components of a stress echocardiography study will no longer report those components separately, but will use a new combined code (93351).

The combination of the revised practice expense formula, the shift of the budget neutrality adjustment from the work RVUs to the conversion factor, and combining separate codes into the new bundled codes results in significant payment cuts for these key echocardiography studies. The national average payment for transthoracic echocardiography with spectral and color flow Doppler echocardiography will decrease from $356 in 2008 to $268 in 2009 – a 25% cut, while payment for stress echocardiography with stress EKG will drop 10% from $302 in 2008 to $272 in 2009.

The new bundled codes for echocardiography result from intense pressure by the Centers for Medicare & Medicaid Services (CMS), Medicare Payment Advisory Commission and other policymakers to move toward combining codes for services frequently performed together. This initiative is fueled by the belief that the payment rates that result from having separate codes for services frequently performed together are too high and do not account for efficiencies in physician work and practice expense. CMS has made clear its intention to unilaterally to reduce payments if specialty societies do not act to create new bundled CPT codes, which the ACC has responded to by proactively developing new codes. For example, the cardiology community’s efforts in 2007 to dissuade CMS from discontinuing any payment for color flow Doppler echocardiography only succeeded because the ACC and the American Society for Echocardiography had initiated the process to establish the new bundled code.

The January edition of Cardiology will include a special pull-out section on new CPT codes for 2009, including the new echocardiography codes as well as new and revised codes for cardiac device monitoring services.

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