Physicians decry ongoing Medicare payment cuts

The American Medical Association (AMA) is criticizing lawmakers for failing to stop ongoing Medicare payment cuts in the latest spending package that they say are endangering physician practices.

“Physicians across the country are outraged that Congress’s proposed spending package locks in a devastating fifth consecutive year of Medicare cuts, threatening access to care for 66 million Medicare patients." Bruce A. Scott, M.D., president of the AMA, said in a statement. "Despite repeated warnings, lawmakers are once again ignoring the dire consequences of these cuts and their impact both on patients and the private practices struggling to keep their doors open."

Physicians faced a 2.83% payment cut to Medicare Physician Fee Schedule reimbursements this January 1, marking the fifth time CMS has reduced payments to physicians. The Medicare payment cuts also come as CMS estimates a 3.5% increase in the Medicare Economic Index, which measures how much it costs to run a physician practice, AMA pointed out.

The trade association has calculated that Medicare payments to physicians are about 33% less compared to 2001 when adjusted for inflation.

AMA was hoping Congress would address the ongoing reimbursement reductions in the spending package. However, House Republicans ditched a bipartisan effort to stop the ongoing Medicare payment cuts.

“Congress has failed physicians, and Medicare patients will pay the price," Scott stated. "The window to reverse this reckless decision is rapidly closing. Lawmakers must explain either why protecting access to quality health care is not a priority or how they plan to fix it."

Other healthcare trade associations have also decried the Medicare payment cuts, urging Congress to undo them. In a Feb. 28 letter to Congressional leaders, more than 100 organizations led by the American College of Radiology requested the inclusion of a fix to the 2025 Medicare Physician Fee Schedule conversion factor in any government funding legislation.

"Clearly, this unstable path threatens Medicare beneficiaries’ timely access to quality care -- in both rural and urban settings," the groups wrote in the letter. "The ongoing downward reimbursement spiral is also contributing to consolidation in the health care system, as more clinicians are no longer able to sustain their practices and are forced to seek alternative business models, such as hospital employment, private equity and other alternatives. Finally, these cuts threaten the ability of our members -- who are employers and small business owners -- to serve as economic engines of our local communities." 

House Republicans, with backing from President Trump, hope to deliver the bill to avert the government shutdown on Mar. 14 to the president's desk by Friday.

"The House and Senate have put together, under the circumstances, a very good funding Bill ('CR')! All Republicans should vote (Please!) YES next week. Great things are coming for America, and I am asking you all to give us a few months to get us through to September so we can continue to put the Country’s 'financial house' in order," President Trump said in a social media post.

Jacqueline LaPointe is a graduate of Brandeis University and King's College London. She has been writing about healthcare finance and revenue cycle management since 2016.