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We demand immediate action by Congress to fix this
financial crisis, which is underpaying physician practices and creating
atrocious conditions for Medicare patients seeking medical attention. To provide
quality healthcare, these physicians must receive wage increases. Cutting wages
establishes a system where providers and patients suffer unfair consequences
through no fault of their own. We need permanent solutions, not temporary
measures, from the government that initially created these situations.
From 2001 to 2023, Medicare physician payments declined 26%. Physicians also saw
a 2% pay cut in 2023, being one of the only providers without automatic pay
increases to counter inflation. In March 2024, the Senate halved the originally
intended 3.4% pay cut to 1.68%. This pay reduction, while less, still
jeopardizes the chance of high-quality medical care for anyone enrolled in the
program as physicians start turning away patients, leaving millions without
proper medical care.
The Medicare Economic Index (MEI), which was 3.8% in 2023, is 4.6% this year,
meaning it is at its highest level in a century. Two main factors creating this
issue are a negative budget-neutrality adjustment linked to introducing a
CMS-developed office visit add-on code and a 1.25% reduction from a temporary
legislative update. These cuts coincide with the ongoing growth in the cost to
practice medicine. Decreases also create a system where physicians struggle to
keep their doors open to Medicare patients as operating costs grow
exponentially.
CY 2024 Medicare Physician Payment Schedule and Quality Payment Program (QPP) Proposed Rule Summary (American Medical Association PDF)
Another year of Medicare physician pay cuts is unconscionable (AMA, 09-14-23)
Inside the proposed 2024 Medicare physician pay schedule (AMA, 11-07-23)
Calendar Year (CY) 2024 Medicare Physician Fee Schedule Final Rule (CMS, 11-02-23)
Final Medicare 2024 rule would cut physician payments by 3.4% (CMA, 11-07-23)
GERIATRICIANS ARE DECLINING
Due to low Medicare reimbursement for services, Geriatricians are now declining. Despite a surging older population, there are far fewer geriatricians, with just over 7,400 compared to over 10,270 in 2000. The number of people over 65 has increased by more than 60% in the United States since 2000, meaning the ratio of providers to older adults is 1 to 10,000. According to the American Geriatrics Society (AGS), 30,000 geriatricians will be needed by 2030 to care for seniors.
Geriatrics Workforce By the Numbers (AGS Official Site)
As America ages, there are few doctors who specialize in seniors’ care (The Washington Post, 2-17-24)
Report discusses how geriatric care providers declining as number of older adults rises (McKnights Long-Term Care News, 11-13-23)
ACTIONS OF 2024
March 8, 2024: the Senate Passed H.R.4366: Fiscal Year 2024 Appropriations Act. This bill provides a 1.68% boost in Medicare payments for physicians, partially addressing the 3.4% cut that went into effect in January. Physicians will be reimbursed by 2.93% effective March 9 until the end of the year.
H.R.4366 - Consolidated Appropriations Act, 2024 (Congress.Gov)
Latest Medicare physician pay cut shows desperate need for overhaul (AMA, 3-6-24)
February 9, 2024: a bipartisan group of senators announced the formation of
the "Medicare Payment Reform Working Group." The group's purpose is for the
lawmakers to "make necessary updates" to 2015's Medicare Access and CHIP
Reauthorization Act (MACRA). The group is also planning to seek feedback from
stakeholders.
U.S. Sens. Catherine Cortez Masto, D-Nevada; Marsha Blackburn, R-Tennessee; John
Barrasso, R-Wyoming; Debbie Stabenow, D-Michigan; Mark Warner, D-Virginia; and
Minority Whip John Thune, R-South Dakota stated in a joint release that the
group formed to begin working on new legislation for “long-term reforms” to
physician payments under Medicare and other program changes.
Cortez Masto, Blackburn, Thune, Barrasso, Stabenow, Warner Announce Formation Of Medicare Payment Reform Working Group (Cortez Masto Official Site, 2-9-24)
ACTIONS OF 2023:
December 13, 2023: Bipartisan lawmakers supporting ending the 3.37% cut posted a "Dear Colleague" letter that nearly 200 members of Congress co-signed. The letter states, "We as policymakers must ensure that physicians and other providers who treat Medicare patients continue to have the necessary financial support to care for our nation's seniors."
"Dear Colleague" PDF (AMA, 12-13-23)
New year, new hope: Momentum builds in Congress to cancel the cut (AMA, 1-4-24)
Congress faces pressure to reverse doctors' payment cuts — again (Axios, 1-10-24)
December 7, 2023: Rep. Greg Murphy, MD (R-N.C.) introduced the "Preserving Seniors' Access to Physicians Act" (H.R. 6683). The bipartisan legislation aims to eliminate the January 1, 2024, 3.37% Medicare physician payment cut. On December 8, 2023, the legislation was referred to the Subcommittee on Health by the Committee on Energy and Commerce.
H.R.6683 - Preserving Seniors’ Access to Physicians Act of 2023 (Congress.Gov)
Bipartisan reps introduce bill canceling 2024's 3.4% Medicare pay cut to physicians (Fierce Healthcare, 12-8-23)
April 3, 2023: The Strengthening Medicare for Patients and Providers Act (HR 2474) was introduced to the House of Representatives. This legislation will provide an annual physician payment update tied to the Medicare Economic Index (MEI). The index measures inflation, employee wages, the cost of running a practice, increases in office rent, and professional liability insurance premiums. Payments will be adjusted as needed based on current expenses. On April 14, 2023, the legislation was referred to the Subcommittee on Health.
H.R.2474 - Strengthening Medicare for Patients and Providers Act (Congress.Gov)
Health care groups rally behind bill to reform Medicare payment (AMA, 4-20-23)
ADVOCATE & REFORM GROUPS:
The Medicare Payment Reform Working Group
The Medicare Payment Reform Working Group, a small group of Republican and Democrat senators, wishes to "make necessary updates" to 2015's Medicare Access and CHIP Reauthorization Act (MACRA). Medicare physicians and their patients are counting on these lawmakers to create positive changes for a future where everyone is supplied with the necessary resources.
Cortez Masto, Blackburn, Thune, Barrasso, Stabenow, Warner Announce Formation Of Medicare Payment Reform Working Group (Cortez Masto Official Site, 2-9-24)
The Physician's Grassroots Network
The Physician's Grassroots Network (PGN), a project of The American Medical Association (AMA), is an advocacy initiative that unites physicians to influence public policy and legislative decisions affecting the medical field. It is open to all physicians interested in advocacy and willing to engage in grassroots activities. The network supports reforms and policies that improve healthcare delivery, access, and affordability, reduce administrative burdens, enhance practice sustainability, and address physician burnout. It Promotes public health initiatives, disease prevention programs, and responses to public health crises.
The Physician's Grassroots Network (Official Site)
The Physician's Grassroots Network (Facebook)
The Physician's Grassroots Network (X)
The Physician's Grassroots Network (Instagram)