Congress Must Act to Prevent Medicare Cuts in 2024 Physician Fee Schedule

AMGA today called on Congress to prevent proposed cuts to the Medicare conversion factor from hindering the ability of multispecialty medical groups and integrated systems of care to provide high-quality care to their patients.

Alexandria, VA – AMGA today called on Congress to prevent proposed cuts to the Medicare conversion factor from hindering the ability of multispecialty medical groups and integrated systems of care to provide high-quality care to their patients. The cut the Centers for Medicare & Medicaid Services (CMS) finalized in the 2024 Physician Fee Schedule final rule is a decrease of $1.15 from the 2023 conversion factor. Congress must act to prevent this cut from taking effect. 

“Those who look at the current payment system and believe the reimbursement rate announced today is sufficient are ignoring the fiscal pressures and increased care demands AMGA members are currently facing,” said AMGA President and CEO Jerry Penso, MD, MBA. “Investment in critical areas such as technology and care redesign is impossible when our members have been forced to absorb cumulative reductions in the conversion factor over the past decade. Instead, AMGA members are considering tough decisions on staffing and the services they can offer. Congress has to act to stop these cuts, which will have a real effect on patient care.”   

AMGA recently surveyed its membership on what actions they would be forced to take if these Medicare cuts were implemented next year. They also were asked about what actions they took in 2023 in reaction to previous year Medicare cuts. Twenty-four percent of AMGA respondents either furloughed or laid off employees in 2023. Forty-nine percent of respondents said they will be forced to furlough or lay off employees in 2024 if the cuts continue. Also, 44% of these provider groups eliminated services to Medicare patients in 2023, and 65% expect to continue doing so in 2024. Twenty-one percent of respondents instituted delays in social determinants of health investments, and 57% are expected to continue these delays in 2024. The survey is available on the AMGA website.

CMS has finalized a conversion factor of $32.74 for 2024, reflecting a decrease of $1.15 compared to the CY 2023 conversion factor of $33.89. AMGA opposes this cut and calls on Congress to stop the scheduled cuts to Medicare payments. 

For more information on AMGA’s efforts to stop the Medicare reimbursement cuts, visit amga.org/stopthecuts.

AMGA Pleased Proposal Includes Telehealth Payment Parity

AMGA strongly endorses CMS’ decision to finalize a telehealth payment policy that treats telehealth care as equivalent to in-office care. Today’s rule builds on the lessons learned from the COVID-19 public health emergency, which demonstrated how vital telehealth care is to providing access to high-quality healthcare. The cost of treating patients through telehealth does not differ from an in-person visit, and AMGA is pleased that CMS’ 2024 final rule reflects this.

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About AMGA

AMGA is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans. 

AMGA represents medical groups and integrated systems of care. Its diverse membership includes multispecialty medical groups, integrated delivery systems, accountable care organizations, and other entities committed to improving healthcare outcomes. AMGA advocates for the formation of innovative, clinically integrated systems of care that advance population health, enhance patient experience, and reduce healthcare costs. For more information, please visit www.amga.org.

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Media Contact:

Sharon Grace
Chief Communications Officer
703.838.0033 ext. 393
sgrace@amga.org
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