Geographic pricing cost index

Geographic Pricing Cost Index is used along with Relative Value Units by Medicare to determine allowable payment amounts for medical procedures. There are multiple GPCIs: Cost of Living, Malpractice, and Practice Cost/Expense. These categories allow Medicare to adjust reimbursement rates to take into account regional and practice-specific factors.

The basic calculation for a Medicare allowed amount is:

2009 Non-Facility Pricing Amount = [(Work RVU * Work GPCI) + (Transitioned Non-Facility PE RVU * PE GPCI) + (MP RVU * MP GPCI)] * Conversion Factor (CF) 1

References

1. Center for Medicare/Medicaid Services - Overview Physician Fee Schedule

External links

• PlexisWeb Glossary Definition
• Physician Fee Schedule Overview, Centers for Medicare & Medicaid Services