Why should payment policy be based on RBRVS (Resourced Based Relative Value Scale)?
Medicare adopted an RBRVS system in 1995. Since that time, its payment for all CPT codes are valued based on three factors: practice expense, provider work expense and professional liability insurance costs. Medicare pays based on the relative value of each code multiplied by a yearly conversion factor. Geographical differences are also factored into the calculation. The value of this system is that interventions that require less skill are paid at a lesser rate than those that require more critical thinking, expense and skill to deliver. Prior to 1995, Medicare was paying huge sums of money for unsupervised modalities and less for the hands-on interventions that physical therapists provide. If another payer adopts the RBRVS system, it is recommended that it be adopted in total. For instance, using the RBRVS system and adding to it a cascading payment methodology would nullify the intent of a relative value system. Therefore, it is recommended that a RBRVS payment policy be adopted so
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- Why should payment policy be based on RBRVS (Resourced Based Relative Value Scale)?
