The Centers for Medicare & Medicaid Services announced today a final rule that will update physician payment rates under the medicare physician fee schedule for 2003. The rule also revises a number of other policies affecting Medicare Part B payment for physicians and other providers. The fee schedule specifies rates paid to physicians for more than 7000 health care services and procedures raning from routine office visits to complex surgical procedures. In 2003, Medicare is expected to pay approximately $44.9 billion to over 750,000 physicians and other practitioners for services paid under the physician fee schedule. Under the final rule, the physician fee conversion factor, which adjusts the base calculation for all physician services, will be reduced by 4.4 percent, beginning March 1, 2003, although total physician spending will increase by 2 percent in 2003. In the rule we are announcing today, CMS has done everything it can to shore up physician payments for 2003, but only Congress has the authority to fix the formula, said CMS Administrator Tom Scully. As a result, physicians will see a reduction of 4.4 percent rather than the 5.1 percent reduction that would have occurred without change. The final rule, which will be published in the December 31 Federal Register will be effective on March 1, 2003. Services provided on or after January 1 and before March 1 will be paid under the 2002 fee schedule.