The Chamber

Medicare Fee Schedule Updates

Position

Medicare should assure the annual Medicare updates without freezes or reductions. The Medicare program pays for orthotic and prosthetic (O&P) services based on a pre-determined fee schedule. The fee schedule amount for O&P services is calculated using historical Medicare allowed amounts from 1986-1987 and is updated annually based on the Consumer Price Index (CPI). Since the Medicare O&P fee schedule was implemented in 1989, federal reimbursement rates for O&P services have increased only 35 percent while the CPI has increased by more than 66 percent.

Fee Schedule Payment Update with 2008 Projection

Alternative to Fee Schedule Reductions

Medicare O&P Improvements to Reduce Fraud and Abuse

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