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:

Appropriate RVUs X  Conversion Factor  X  Appropriate GPCIs