Who sets the amount paid per RVU?

Who sets the amount paid per RVU?

• A. Private insurers
• B. Medicare
• C. Physicians
• D. Hospitals

Answer: (B)

RVUs translate a service into a value that Medicare uses to determine payment. For Medicare, the amount paid per RVU is the dollar value that CMS publishes in the Physician Fee Schedule each year, and this rate is used to multiply the RVUs for a given CPT code (including work, practice expense, and malpractice components). That per-RVU rate is set by Medicare (CMS), not by private insurers, physicians, or hospitals. Private insurers may use Medicare rates as a baseline or negotiate their own per-RVU amounts, but the official rate comes from Medicare.

RVUs translate a service into a value that Medicare uses to determine payment. For Medicare, the amount paid per RVU is the dollar value that CMS publishes in the Physician Fee Schedule each year, and this rate is used to multiply the RVUs for a given CPT code (including work, practice expense, and malpractice components). That per-RVU rate is set by Medicare (CMS), not by private insurers, physicians, or hospitals. Private insurers may use Medicare rates as a baseline or negotiate their own per-RVU amounts, but the official rate comes from Medicare.