Medicare Payment Cuts Could Force Service, Staffing Reductions
AMGA today expressed its concerns regarding the proposed cut in the Medicare conversion factor, which if implemented, would reduce Medicare payments to healthcare providers. While the cost of healthcare is increasing, Medicare’s payments have not kept pace.
Alexandria, VA – AMGA today expressed its concerns regarding the proposed cut in the Medicare conversion factor, which if implemented, would reduce Medicare payments to healthcare providers. While the cost of healthcare is increasing, Medicare’s payments have not kept pace. AMGA members are not in a position to absorb these cuts, and they have stated that the decrease may result in a reduction of services, staff, or both. Congress must intervene to stop the reduction in the Medicare conversion factor.
“This is no longer a theoretical problem for AMGA members,” said AMGA President and CEO Jerry Penso, MD, MBA. “AMGA members provide vital services to their communities, and the cost of doing so has continued to increase. Medicare’s reimbursement system needs to reflect this reality. This annual cycle of cuts limits AMGA members’ ability to provide care and impedes investment in the future. Congress needs to prevent these cuts.”
In its CY2024 Physician Fee Schedule proposed rule, the Centers for Medicare and Medicaid Services (CMS) is proposing a 3.36% decrease in the conversion factor, from $33.89 to $32.75. AMGA opposes this cut, which is in addition to cuts that have accumulated over the years. The conversion factor has decreased by 3.3% in 2021, by 0.80% in 2022, and by 2% in 2023.
AMGA Commends Telehealth Parity Proposal
Despite opposition to the cut in the conversion faction, AMGA strongly endorses CMS’ proposal to continue reimbursing telehealth services provided to patients in their homes at the non-facility payment rate, as detailed in the proposed rule. Telehealth has become a vital tool for AMGA member physicians. AMGA greatly appreciates CMS’ willingness to maintain payment parity between telehealth services and in-office care, as these services are equally resource intensive for physicians. AMGA strongly encourages CMS to finalize this proposal.
“Keeping telehealth and in-office payments equivalent will help ensure telehealth remains a viable option for AMGA members and their patients,” Penso added. “We appreciate CMS’ willingness to reconsider its earlier policy to revert to a pre-pandemic telehealth payment policy.”
The full letter in available on the AMGA website.
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 amga.org.