SNMMI Opposes Conversion Factor Cuts to the Medicare Physician Fee Schedule in CMS’ Proposed FY25 Rule

On Tuesday, July 9, the Centers for Medicare & Medicaid Services (CMS) released the proposed rule for the 2025 Medicare Physician Fee Schedule (MPFS). Below are key takeaways SNMMI would like to make our members aware of.

In 2025, the Medicare conversion factor is slated to decrease for the fifth consecutive year, dropping by about 2.80 percent from $33.2875 to $32.3562. This cut stems from the expiration of a temporary 2.93% increase to the conversion factor at the close of 2024, alongside a 0% baseline update for 2025 as outlined in the Medicare Access and CHIP Reauthorization Act. Unfortunately, these cuts come during a period of continued growth in the cost of medical practice, with CMS projecting a 3.6% rise in the Medicare Economic Index for 2025.

Fortunately, CMS expects the overall impact of the proposed MPFS to be neutral for nuclear medicine and radiology.

SNMMI will continue to work with Congress and other stakeholders to fix the Medicare conversion factor through the legislative process. 

The Society continues to analyze the entire proposed rule and will develop a more comprehensive summary, including details on nuclear medicine coding, in the coming days.