January 7, 2021

CMS Issues Updated 2021 Conversion Factor and RVUs

The $900 billion federal stimulus relief passed in December provided for a one-time, one-year increase to all payments in the 2021 Medicare physician fee schedule by adding $3 billion and delaying payment of HCPCS add-on code G2211 for three years. This provision is intended to support physicians and other professionals in adjusting to changes in the Medicare physician fee schedule during 2021, and to provide relief during the COVID-19 public health emergency. CMS has now clarified, in a follow up to the relief package, an update to the 2021 conversion factor and payment rates.

The Center for Medicare & Medicaid Services has confirmed that the new 2021 conversion factor will be $34.8931 instead of $32.4085 (download the updated impact on 2021 payments for select procedures here). CMS also updated the 2021 RVU file (download the RVUs and related information used for the 2021 Medicare final rule here). For accurate rates based on your geographic area, check with your Medicare administrative contractor.