Medicare Physician Providers and Patients
Get “Grinched” by Congress – Again
The waning hours of the 118th Congress offered hope but eventually became a disappointment as a fix for the Medicare physician payment cut was eliminated from the year-end funding package. The legislation enacted was a spending measure – a Continuing Resolution (CR) – to keep the federal government funded to avoid a government shutdown. The bill (H.R. 10545) passed by both chambers and signed into law by the President provides temporary funding through March 14, 2025, when Congress will again have to tackle the budgetary challenge of how it will meet the operational challenges faced by our country which depend on federal appropriations.
Among the priority issues we worked on throughout 2024 and continue to advocate for in the New Year is a fix for Medicare physician payment. The 2.83% cut that went into effect on January 1, 2025, represents the fifth year in a row that physicians have been hit with reduced payment for services, while the cost of maintaining a medical practice continues to rise.
The initial debate on the year-end CR showed promise, with not only an offset of the 2.83% cut included, but also a positive adjustment in acknowledgement of the increasing costs that medical practices are facing. Due to the costs associated with these provisions, and no designated cost offsets, this section of the bill was ultimately eliminated from the final version along with several other provisions that were in the legislation as introduced.
What now?
In our legislative and political advocacy work, there is no “off season,” so we are moving forward with our same message – with a bit more volume since the payment cut has exceeded the pain threshold for many. The 119th Congress has gaveled in, with many new faces, and we are re-engaging our incumbents while connecting with and educating our new congressional delegation members. Medicare payment reform remains a top priority, and we will not relent in our work to achieve an inflationary payment adjustment for physicians, which hospitals and other providers receive.
The first opportunity for action to retract the 2.83% cut will be in March. The House and Senate will again have to take action to avoid a budgetary shutdown of the federal government, and that funding package will be a vehicle for a Medicare payment adjustment. Be on the lookout for more information on the next concerted effort to gain payment relief and on how you can help that effort.
In the meantime, we need you on the team to help our federal advocacy efforts. We need your support . . .
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