On July 7, CMS issued the proposed rule for the 2023 Medicare Physician Fee Schedule (“PFS”). Published in the Federal Register on July 29, key changes in the proposal include a net 4% reduction of the conversion factor by $1.53 (from $34.61 to $33.08). The 2023 proposal also builds on previous changes to the evaluation and management (E/M) codes. The E/M codes being revised under the proposal make up about 20 percent of all allowed charges under the PFS. The changes to these codes are intended to limit the administrative burden on physicians. Other notable changes include the expansion of telehealth services, with the extension of telehealth services that were covered during the pandemic through 2024 and the addition of a number of other telehealth services that could be covered under the proposal.