Policy Analysis: How the 2024 Medicare Physician Fee Schedule Will Affect You and Your Doctor
1. Introduction The Medicare Physician Fee Schedule (PFS) serves as the bedrock for Medicare billing, covering services offered by physicians and a variety of other medical professionals since 1992. The PFS is versatile, applying to services rendered in multiple settings from physician offices to home care. It uses relative value units (RVUs) that encompass work, practice expense, and malpractice components, which, when combined with a conversion factor and geographic adjusters, determine the payment rates for services 1 . The 2024 updates are particularly pivotal. They include a 1.25% decrease in overall payment rates from the previous year, with the conversion factor reducing to $32.74. However, these updates also bring significant payment increases for primary care and direct patient care, reflecting a move towards more equitable healthcare with improved access and quality 1 . Newly finalized policies for 2024 reflect a commitment to addressing broader health-related socia