On April 20, 120 healthcare and specialty organizations from around the country announced support for a House bill to reform the Medicare payment system.

In a letter submitted to U.S. Representatives last week, the group indicated support for HR 2474, which would tie annual Medicare fee schedule updates to the Medicare Economic Index.

Physician payments have declined 26% since 2001 when adjusted for inflation, with a most recent reduction of  2% in 2023, according to the American Medical Association (AMA). 

“Increasingly thin operating margins disproportionately affect small, independent, and rural physician practices, as well as those treating low-income or other historically minoritized or marginalized patient communities,” wrote AMA in a statement.  

Medical Group Management Association, also supporting the bill, said “Medical practices are in no way immune to record inflation, staffing shortages, and across-the-board cost increases. This legislation would allow Medicare to more accurately reflect the impact of the broader economy on practices’ financial stability. We appreciate Representatives Ruiz, Bera, Bucshon, and Miller-Meeks for the introduction of this bill that, if passed, will ensure continued access to care for vulnerable Medicare beneficiaries nationwide,” in a statement.