In 2025, the Medicare conversion factor is slated to decrease for the fifth consecutive year, dropping by about 2.80% 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.

While CMS expects the overall impact of the proposed MPFS to be neutral for nuclear medicine and radiology, SNMMI will continue to work with the entire medical community until the reimbursement issue is fixed. 
On Friday, December 20th, Congressional leaders passed a FY2025 Continuing Resolution (CR). The CR was signed into law by President Biden. The CR included a section addressing the looming Medicare payment challenges. The package provides relief to the Medicare Physician Fee Schedule (MPFS) conversion factor for 2025 - originally set at 2.83%, down 0.33% to 2.5%. Sadly, this change mitigates rather than eliminates the scheduled cut. Lawmakers emphasized this measure as a compromise to sustain the viability of medical practices serving the Medicare population while balancing fiscal constraints.

Despite this small reprieve, many within the medical community view the adjustment as a temporary fix rather than a long-term solution to the systemic issues in Medicare payment structures. Sustained cuts to the MPFS will only impact physicians and patients more, as the cost of healthcare rises. 

The CR will last until March 14th, 2025. Congressional leaders will have to then work together to pass the full FY2025 Budget. 

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