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The Resource-Based Relative Value Scale Addresses Major Shortcomings in the Current System

• The Official Medical Fee Schedule uses outdated procedure codes to describe medical services. The percentage of payments that would be using fee-schedule rates would increase from 90 percent to 96 percent. This percentage would increase with improved coding and less-frequent use of unlisted procedure codes.
• The relative values in the current fee schedule are based on historical charges. The resource-based relative value scale reflects the resources (costs) required to furnish services and would offer budget-neutral incentives for providing services.
• The current fee schedule does not provide for regular updates for changes in coding, practice patterns, or inflation. Linking the Official Medical Fee Schedule to the Medicare Physician Fee Schedule would provide a mechanism for annual updates.
• Over the four-year period, total allowable fees are estimated to increase 11.9 percent.
• Because most specialties furnish a range of services, the impacts by specialty are generally less than the impacts by type of service.