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January 24, 2023

Academy Joins with Broad Provider Coalition to Advocate for Medicare Payment Reform

  • Government Relations News

The Academy joined with a broad coalition of non-physician and physician providers to urge Congress to continue to work on long-term substantive payment reforms in Medicare. The Coalition letter provides that while Congress has taken action to address some of these fiscal challenges by mitigating some of the recent Medicare Physician Fee Schedule (MPFS) cuts, payment continues to decline.

According to an American Medical Association (AMA) analysis of Medicare Trustees data, when adjusted for inflation, Medicare payments to clinicians have declined by 22 percent from 2001–2021. Additionally, the MPFS lacks an annual inflationary update, even though clinicians—many of whom are small business owners—contend with a wide range of shifting economic factors, such as increasing administrative burdens, staff salaries, office rent, and purchasing of essential technology when determining their ability to provide care to Medicare patients. 

The absence of an annual inflationary update, combined with statutory budget neutrality requirements further compounds the difficulties our members face in managing resources to continue caring for patients in their communities. The Coalition letter requests that Congress to work with providers on long-term, substantive payment reforms and urge congressional hearings as soon as possible.

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