Payment Policy Changes

On December 10, President Biden signed into law legislation to delay significant cuts to Medicare reimbursement (see breakdown with updates below). The measure will provide short-term relief for physician practices across the country who would otherwise be faced with an up to 10% decrease in payments beginning Jan. 1, 2022.

  • Medicare Sequester Cut (-2%) - Phased in implementation of cuts with a delay through March 31, 2022, then a reduction to 1% through June
  • Pay-As-You-Go (PAYGO) Cut (-4%) - Delayed until January 1, 2023
  • Conversion Factor Update (-3.75%) - Lowered to -0.75% for one year

AAOS was pleased to see Congress take action to mitigate the cuts before the end of the year, but it is only a temporary fix to Medicare's broken payment system. We will continue to advocate for long-lasting reforms that will help our members and improve patient access to care (see full AAOS statement).