CMS released to Medicare contractors (with instructions to keep it a secret until after the final was published) Transmittal AB-02-181 on December 23, 2002. Two points are particularly noteworthy: (1) physicians will have until February 28 to decide whether or not to be "participating" in CY '03; the decision, however, will be retroactively effective to January 1; and (2) the new fee schedule payment amounts will be effective for claims processed on or after March 1, not services furnished on or after that date. Thus, services furnished in January or February may or may not be paid at the (higher) 2002 rates, depending on when the contractor actually processes the claim. On December 31, 2002, CMS published its FY2003 physician payment final rule reducing the physician fee conversion factor by 4.4 percent. The final rule also revises and clarifies other Medicare Part B policies, including expanding the type of colorectal cancer screening tests eligible for coverage and increasing Medicare payment for administration of some vaccine immunizations, including flu shots. Both documents are available on CMS's website, http://www.cms.hhs.gov.

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