To protect physician payments under Medicare, Congress is taking action to prevent planned cuts set to take effect in 2025, a move that has garnered strong support from healthcare organizations.
Republicans and Democrats in the House have sponsored a bipartisan bill, the Medicare Patient Access and Practice Stabilization Act, to counter a proposed 2.8% reduction in Medicare payments. U.S. Reps spearhead the bill. Greg Murphy (R-N.C.) and Jimmy Panetta (D-Calif.), with bipartisan backing.
The bill’s objective is to halt the Medicare cuts while providing payment increases tied to half the Medicare Economic Index, reflecting changes in practice costs. American Medical Association President Bruce A. Scott, M.D., praised the effort, noting the urgency of passing the measure before the year ends to prevent the cuts from taking effect in just two months.
Scott emphasized that Medicare payment rates have dropped by 29% over the past 20 years when accounting for rising practice costs. He warned that the continued cuts could reduce access to care, with physicians leaving the profession or opting out of Medicare entirely. “Lawmakers must act in the lame-duck session,” he urged.
The legislative days left in the current Congress are few, with most members set to go on recess after the election. Still, support from across the healthcare sector is vital. The Medical Group Management Association’s Senior vice president of Government Affairs, Anders Gilberg, pointed to the annual need for Congressional intervention as evidence of a “broken” reimbursement system that needs lasting reform.
As a practicing doctor, Rep. Murphy said he’s acutely aware of the pressures facing physicians. He calls Medicare payment cuts a severe risk to affordable, quality care and emphasizes the potential impact of continuous cuts, which might push more doctors to retire, close practices, or stop accepting Medicare patients.
Rep. Panetta echoed Murphy’s concerns, saying the bill aims to adjust reimbursements for inflation, expanding seniors’ access to quality healthcare.
Dr. Shannon Udovic-Constant, President of the California Medical Association, expressed her support, noting the yearly threat these cuts pose to patient care and the physician workforce. “We must stop undermining healthcare coverage and instead invest in ensuring seniors have access to healthcare,” she said.
The proposed legislation has also gained support from key organizations, including the American College of Surgeons, the Federation of American Hospitals, the American College of Emergency Physicians, and other healthcare advocacy groups. It highlights a united call for Congressional action to sustain access to care for Medicare patients.