Medicare Payment Cut Impact Survey Results
Over the two-week period of November 14-28, 2024, the North Carolina Medical Society surveyed physicians across North Carolina regarding the 2.8% Medicare physician payment cut scheduled to take effect on January 1, 2025. Just under 500 responses were received. The initial data from the responses, summarized below, accentuates the dire situation that will result from another cut in Medicare physician payment.
The NCMS continues to advocate for a positive adjustment to Medicare payment for 2025 and has joined many state and national partner societies in an appeal to Congress to at least avert the impending cut.
Survey Results
- Are you enrolled as a Medicare provider?
Yes – 92.5%
No – 7.5%
If Medicare payment kept up with inflation, would you become a participating Medicare provider?
Yes – 11%
No – 37%
- How will another Medicare payment cut affect your practice?
| I will reduce the number of appointment slots for existing Medicare patients | 36.0 % |
| I will continue to see existing Medicare patients but not accept new Medicare patient | 23.5 % |
| I will discontinue seeing Medicare patients (unenroll) | 3.5 % |
| No change | 3.5 % |
| Unsure | 1.0 % |
| Other (see below) | 32.5 % |
“Other” / Comments:
“Will make it difficult to hire new staff to meet the increasing demands.”
“There will be longer wait times for patients to be seen.”
“Will do the best i can as a physician.”
“I will retire from practice. This is not sustainable.”
“We turn no one away but still need to keep the doors open. These consistent cuts are not making it easy.”
“Will affect payment for Medicaid”
“We are still evaluating the situation but all of the above are possible”
“Longer waits”
“I will close or leave my rural practice or have to move to a larger corporation that can handle the cuts”
“I may have to stop practicing”
“I will do the best I can, if cost too much will have to cut back on all, already 2-3 week wait”
“I will continue to take care of my Medicare patients at my personal cost”
“I will have to retire. I am just breaking even with Medicare and can no longer afford to stay in business.”
“Medicare cuts will influence private insurance reimbursements and therefore cutting ALL insurances is a risk”
“I may have to close my practice completely”
“Will make it harder to stay in business and seeing all Medicare patients”
“We are urgent care. Have yet to decide”
“It will cost the hospital that supports my practice”
“All of our MD’s are taking a pay cut due to declining Medicare reimbursement”
“Affects financials significantly”
“Will greatly decrease number of slots for Medicare new patients”
“Do not have an option but will be very disheartening for future”
- What practice operation factors are impacted by Medicare payment?
| Ability to meet operational expenses (overhead, payroll) | 62.0 % |
| Ability to implement system/tech upgrades | 48.0 % |
| Ability to hire/retain staff | 47.0 % |
| Ability to recruit physicians to join the practice | 44.0 % |
- Medicare payment rates impact other payment rates (Medicaid, State Health Plan, Tricare). Will a cut in Medicare payment result in a reduction in your other patient populations . . .
Medicaid
Yes 76 %
No 24 %
State Health Plan
Yes 67 %
No 33 %
Tricare
Yes 65 %
No 35 %