On Nov. 15, the AMA, along with dozens of national physician specialty societies and state medical associations, including ISMA, sent a letter to Congressional leaders urging them to pass legislation to prevent the scheduled 2.83% Medicare physician payment cut for 2025 and instead provide a positive payment update.

The Centers for Medicare and Medicaid Services (CMS) recently finalized the CY 2025 Medicare Physician Fee Schedule (MPFS) rule, which cuts Medicare physician payments by 2.83% beginning Jan. 1.

Physician practices cannot continue to absorb the effects of ever-increasing inflation while their payment rates dwindle year after year. While the Medicare Economic Index (MEI) will increase by 3.5%, physicians will not receive an update reflecting inflation under the current plan. Medicare payments to physicians have declined by 29% over the last two decades when adjusted for inflation in practice cost.

The letter to Congress supports bipartisan bill H.R. 10073, the Medicare Patient Access and Practice Stabilization Act of 2024, which would replace the 2.83% cut with a 1.8% payment update, equal to half the MEI increase forecasted for 2024. The suggestion is the same amount the Medicare Payment Advisory Commission recommends to avoid forecasted problems with patient access to care in the Medicare program under the current payment system. 

Read the letter >>