Physicians across the United States are grappling with a series of financial challenges brought on by recent Medicare pay cuts and insufficient adjustments for medical inflation, placing them in a precarious position. In response to these pressing issues, a new bipartisan bill—titled the Medicare Patient Access and Practice Stabilization Act of 2025—has been introduced, aiming to provide a substantial 6.6% increase in physician pay from April through December. This increase is designed to counteract the 2.83% pay cut that took effect at the beginning of the year, offering financial stability and support to physicians who have been operating under significant strain.
Addressing Financial Pressures on Physicians
The necessity for this legislative adjustment is underscored by the numerous financial pressures that physicians are currently facing. These include below-cost Medicare reimbursement rates, rising medical inflation, and declining overall reimbursement rates. Representative Greg Murphy, M.D., R-North Carolina, a key advocate for the bill, has emphasized the critical financial viability challenges currently confronting private practice medicine. He pointed out that private practices are known for their cost-efficiency and personalized care but are struggling to stay afloat due to insufficient reimbursements and rising costs. Murphy stressed that the proposed legislation is vital for preventing further pay cuts, providing an inflation-adjusted increase, and ensuring that Medicare remains viable for both doctors and patients.
The bill has garnered widespread bipartisan support, reflecting the urgency of the issue at hand. In addition to Murphy, co-sponsors include a diverse array of representatives from both the Republican and Democratic parties. Notable supporters include Jimmy Panetta, D-California; John Joyce, M.D., R-Pennsylvania; Raul Ruiz, M.D., D-California; Mariannette Miller-Meeks, M.D., R-Iowa; Kim Schrier, M.D., D-Washington; Claudia Tenney, R-New York; Ami Bera, M.D., D-California; Carol Miller, R-West Virginia; and Raja Krishnamoorthi, D-Illinois. Many of these lawmakers have previously attempted to address similar issues through legislative efforts introduced in October, although those proposals did not make it into the year-end spending bill. This renewed effort underscores the continued and pressing need for financial relief for the nation’s physicians.
Impact on Rural and Underserved Areas
One of the most compelling arguments made by the lawmakers supporting this bill is the significant impact Medicare reimbursement cuts have on the broader healthcare system, particularly in rural and underserved areas. These cuts often result in reduced availability of care, leading to physician practice layoffs or closures and increased burnout among healthcare providers. The proposed bill aims to mitigate these detrimental impacts by providing much-needed financial relief and stability to physicians through enhanced Medicare payments. This, in turn, would help ensure that care remains accessible in areas that are already struggling with healthcare availability.
Support for the bill extends beyond lawmakers to a broad spectrum of the medical community, encompassing more than 150 provider professional associations, trade groups, and lobbyists. This widespread support highlights the pervasive concern about the financial sustainability of medical practices under the current reimbursement structures. At the heart of this coalition is the American Medical Association (AMA), which has been particularly vocal about the financial pressures on physicians. The AMA notes that inflation-adjusted Medicare reimbursements for physician services have decreased by 33% since 2001. Although there has been a modest 7% increase in Medicare payments, this improvement is vastly overshadowed by a 59% rise in medical practice costs over the same period.
Advocacy from Medical Associations
AMA President Bruce A. Scott, M.D., has underscored the urgency of the situation, noting that the proposed legislation is an essential step to reverse the pay cuts that physician practices have endured over the past four years. Without this intervention, Scott warned that the unsustainable financial trend would ultimately damage patient access to care. Echoing this need for change, the Medicare Payment Advisory Commission has recently lent its support to revisiting the pay cuts. However, the Commission’s suggestion involves replacing the current law with an update equivalent to the Medicare Economic Index minus one percentage point and introducing safety-net add-on payments that are not budget neutral.
In addition to the AMA and the Medicare Payment Advisory Commission, the Medical Group Management Association (MGMA) has also been a fervent advocate for the swift passage of the bill. The MGMA has highlighted the uncertainty and negative repercussions resulting from Congress’s failure to reverse the planned Medicare fee schedule cuts for 2025. They have emphasized that these cuts negatively impact the financial viability of medical practices, many of which rely on Medicare rates for commercial contracts and Medicaid reimbursement benchmarks. The MGMA pointed out that with nearly 80% of physicians now employed by larger entities, community-based practices in areas dependent on Medicare beneficiaries are especially susceptible to access issues.
Ensuring Sustainability of Medical Practices
Physicians across the United States are struggling with a host of financial challenges due to recent Medicare pay cuts and inadequate adjustments for medical inflation. This situation has put them in a difficult and precarious position. To address these urgent issues, lawmakers have introduced a new bipartisan bill called the Medicare Patient Access and Practice Stabilization Act of 2025. The proposed legislation aims to provide a significant 6.6% increase in physician pay, effective from April through December. This pay raise is specifically designed to offset the 2.83% pay cut that started at the beginning of the year. By doing so, the bill aims to offer financial stability and support to doctors who have been working under substantial financial pressure. The proposed adjustments would help ensure that physicians can continue providing critical medical care without the added burden of financial insecurity, contributing to a more sustainable healthcare system overall.
