Medicare Pay Fix Legislation Introduced
Congressman Greg Murphy, MD lead sponsor
Among the important unresolved congressional issues that were pending at the conclusion of 2024, the fight to reverse the cut in Medicare payment has resumed. Congressman Greg Murphy, MD (NC-3), along with a bipartisan group of his House colleagues, has introduced new legislation to stop the 2.83% cut in Medicare physician payment while also providing a positive payment update to help practices absorb the increasing costs they are facing.
The bill, Medicare Patient Access and Practice Stabilization Act, provides for a 6.62% payment increase beginning April 1, 2025 and remaining in effect through the end of the year. The adjusted pay rate would offset the cut during the first three months of the year and add an inflation-based payment increase.
Dr. Murphy shared the following statement upon introduction of the legislation:
“Physicians in America are facing unprecedented financial viability challenges due to continued Medicare cuts. Access to affordable and quality health care for millions of seniors is in severe jeopardy,” said Congressman Greg Murphy, M.D. “Doctors see Medicare patients out of compassion, not for financial gain. The cost of caring for a Medicare patient far outpaces the reimbursement that physicians receive for seeing them. On top of that, the expense of providing care continues to rise due to medical inflation. This inflation, coupled with declining reimbursement rates, creates enormous financial pressures on physicians, forcing many to retire early, stop accepting new Medicare patients, or sell out to larger, consolidated hospital systems, private equity, or even insurance companies. The future of private practice medicine, the most cost-efficient and personalized care, is in dire straits. This bipartisan legislation prevents further cuts, provides a modest inflationary adjustment to help ease the cost of care, and ensures Medicare remains viable for both doctors and patients.”
When adjusted for inflation, Medicare payment to physicians has declined by 33% over the past 24 years.
The NC Medical Society has been and continues be engaged in the fight to reverse the Medicare payment cut and applauds Congressman Murphy and his House colleagues for re-energizing the effort to preserve and increase Medicare beneficiaries’ access to the care they deserve. North Carolina physicians have made it clear that they cannot absorb another Medicare cut and that access to care will decline for Medicare patients if Congress does not take action.
As the pace of legislative activity on Capitol Hill increases, reversing the trend of Medicare physician payment cuts is a top priority. The NCMS is engaged with our members of the House of Representatives to encourage support of the Medicare Patient Access and Practice Stabilization Act, and we are encouraging our members of the Senate to introduce and support a companion bill in that chamber.