1. The dollars and cents amount that is established for one unit as applied to a service rendered. This unit is then used to convert various services/procedures into fee-schedule payment amounts by multiplying the relative value unit by the conversion factor. 2. National multiplier used to convert the relative value units for each procedure into dollar amounts. The CF is announced annually by the Centers for Medicare and Medicaid Services (CMS) for all services paid under the resource-based relative value scale (RBRVS) Medicare Fee Schedule. Sometimes called conversion number or national conversion factor.
Insurance Encyclopedia
Conversion factor update
Annual percentage change to the Medicare Fee Schedule conversion factor. It is determined by the Congress or the default formula under Volume Performance Standards.
Conversion fund
Fund in which unallocated employer contributions are made to a combination plan. Also called side fund.
Conversion fund (Pensions)
A fund that supplements a life insurance or limited payment life. The fund increases the amount of cash dispersed at the time of retirement, thereby providing the insured with a monthly income.
Conversion member
Individual whose employment has been terminated and is no longer a member of the employer’s group insurance plan but is still able to continue his or her insurance benefits because of eligibility under the Consolidated Omnibus Reconciliation Act of 1985 (COBRA).
Conversion number
See: conversion factor (CF).
Conversion plan
Group health plan that permits a member to change his or her insurance coverage (different benefits and rates) to an individual contract without a physical examination. This situation may occur at termination of employment. Also known as conversion privilege or conversion.
Conversion privilege
1. Right of an individual covered by a group insurance policy to convert to coverage under an individual insurance policy. This can occur when a person leaves the group, benefits are downgraded or terminated for a specific class, or when the group policy is terminated. 2. Right to change insurance coverage in specific situations from one type of policy to another (e.g., individual term insurance to individual whole life insurance). Also known as conversion.
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The right given to an insured person to change insurance without evidence of insurability.
Conversion privilege (Health Insurance/Life Insurance)
The insured’s ability to change from a group to individual policy, should he or she leave the group.
Convert
Act of transferring group insurance coverage to an individual insurance policy.