In a significant move to address the long-standing issue of declining physician reimbursements, a bipartisan bill introduced in Congress aims to block the proposed Medicare pay cuts for 2025 while also increasing physician pay. The Medicare Patient Access and Practice Stabilization Act seeks to override a suggested 2.8% cut to the conversion factor by the Centers for Medicare and Medicaid Services (CMS) in the draft CY2025 Physician Fee Schedule. Moreover, instead of this reduction, the bill proposes a 4.73% increase in physician pay, including an additional 1.93% adjustment to account for inflation, using the Medicare Economic Index as a gauge.
Bipartisan Support for the Bill
Rising Concern Over Declining Physician Reimbursements
The bill has garnered extensive support from multiple representatives, indicating a strong bipartisan effort to tackle the pressing issue of declining physician reimbursements. According to the American Medical Association, physician pay has decreased by 29% since 2001 as a result of continuous reimbursement cuts coupled with inflation. This financial strain is pushing many doctors toward retirement or the closure of their practices. Additionally, several physicians are opting not to accept new Medicare patients or are seeking less efficient employment opportunities. This situation compromises access to affordable, high-quality healthcare for millions of Medicare beneficiaries, jeopardizing the nation’s healthcare stability and the future of medical service provision.
Co-leader of the bill, Rep. Greg Murphy, M.D., underscored the critical need for this legislation to maintain the viability of medical practices and protect essential Medicare services. He highlighted the growing difficulty for many practices to sustain operations under the current financial constraints. Jeffrey Davis, the health policy director at McDermott+Consulting, noted that this bill represents the first significant legislative attempt to address the inflationary pressures on physician pay in several years. Despite the existence of similar bills, none have passed into law, emphasizing the urgency and importance of this bill.
Addressing Inflation and Financial Strain
The Medicare Economic Index Adjustment
The proposed 4.73% pay increase, which includes an additional 1.93% to account for inflation using the Medicare Economic Index, represents a crucial step in mitigating the financial strain experienced by physicians. The indexed adjustment aims to ensure that physician compensation keeps pace with the rising costs associated with providing medical care. This adjustment is vital in preventing further demoralization within the medical profession and securing a sustainable future for Medicare services. The financial viability of practices hinges significantly on the adequacy of reimbursements, and a failure to address these concerns could lead to a further exodus of physicians from essential service areas.
The consensus among lawmakers and healthcare advocates is clear: immediate action is necessary to avoid the continued erosion of Medicare’s service provision capacity. As the final CY2025 Physician Fee Schedule is still pending, there is anticipation that the proposed 2.8% cut might be adjusted. Any adjustments or revisions in the schedule could impact the scale and effectiveness of the suggested pay raise. Lawmakers highlight the need for immediate legislative intervention to preserve the long-term stability and quality of Medicare services, emphasizing the bill as a crucial step to safeguard both providers and patients in the Medicare system.
Securing a Reliable Healthcare Future
In response to the ongoing issue of declining reimbursements for physicians, a bipartisan bill has been introduced in Congress to counteract proposed Medicare pay cuts for 2025 and increase physician pay. Named the Medicare Patient Access and Practice Stabilization Act, this bill is designed to block a proposed 2.8% cut to the conversion factor by the Centers for Medicare and Medicaid Services (CMS) in the draft CY2025 Physician Fee Schedule. Instead of the reduction, the bill puts forward a proposal for a 4.73% pay increase for physicians. This boost includes an additional 1.93% adjustment to account for inflation, using the Medicare Economic Index as a benchmark. This proposed legislation is a significant step toward stabilizing physician income and ensuring that patients continue to have access to medical care. By addressing these financial concerns, the bill aims to maintain the stability of medical practices and ensure that healthcare providers are fairly compensated for their essential services.
