Lawmakers Move to Reverse Medicare Payment Cut

A bipartisan group of Representatives recently introduced the Medicare Patient Access and Practice Stabilization Act. The ACS strongly supports this critical legislation that would prospectively reverse the Medicare physician payment cut that went into effect on January 1. 

Introduced by Representatives Greg Murphy, MD (R-NC), Jimmy Panetta (D-CA), John Joyce, MD (R-PA), Raul Ruiz, MD (D-CA), Mariannette Miller-Meeks, MD (R-IA), Kim Schrier, MD (D-WA), Claudia Tenney (R-NY), Ami Bera, MD (D-CA), Carol Miller (R-WV), and Raja Krishnamoorthi (D-IL), the legislation would reverse the 2.8% payment reduction and provide a 2.0% inflationary adjustment for the remainder of 2025. This action would give surgeons needed relief and ensure critical access for vulnerable Medicare beneficiaries.

These steps, while not long-term reforms, will be critical in alleviating the financial pressure currently affecting the private practice community, in particular.

Since 2001, physicians have seen their Medicare physician payments decrease by 13% in real terms between 2001 and 2024 before indexing for inflation. Physicians in private practices continue to face ongoing financial struggles to keep their facilities operational and must also contend with a payment system that has not kept pace with inflation.

The 2.8% cut to payments earlier this year coincides with a 3.6% increase in medical practice cost inflation as measured by the Medicare Economic Index (MEI). When adjusted for inflation, Medicare physician payments have decreased by nearly 30% in this same period.

The ACS stands ready to partner with Congress in enacting crucial long-term reforms to the broken payment system. Make your voice heard — contact your Representative and tell them to support this important legislation.