Signed Budget Deal Reduces Medicare Payment Cuts by Half

On Saturday, March 9, 2024, President Biden signed into law the Consolidated Appropriations Act of 2024 (H.R. 4366). This legislation is the result of a budget deal struck to continue to fund the government and included a provision to reduce by about half (1.68 percent) of the 2024 3.37 percent cut to the Medicare fee schedule conversion factor.

The increase to current payment levels took effect on March 9, and will continue through the calendar year. The Academy has been working with a broad coalition of both physician and non-physician providers to urge Congress to act to mitigate the recent cuts to Medicare reimbursement and is pleased by this recent development. However, this coalition continues to press for lasting changes to the physician fee schedule to ensure that payments to providers keep pace with inflation and the costs of providing care.