AMGA Urges Congress to Reverse Medicare Cuts in Physician Fee Schedule Rule
Unless Congress acts this year, Medicare provider reimbursement rates will be cut by 2.8% on January 1, 2025. A new AMGA survey shows the very real impact on patient care the potential reduction will have. It also reveals that if the cuts go into effect, more medical groups will be forced to take action in 2025, and in some categories there’s a dramatic increase, such as in eliminating patient services.
Today we called on Congress to act to reverse the potential cut to the Medicare conversion factor.
Survey Reveals Impact on Patient Care Growing
Alexandria, VA – AMGA today called on Congress to act to reverse a pending cut to the Medicare conversion factor that would continue to strain medical groups and integrated systems of care. As part of its proposed physician payment rule for 2025, the Centers for Medicare & Medicaid Services (CMS) proposed a reduction in the Medicare conversion factor by 2.8%. The scheduled reduction represents the fifth consecutive year CMS issued a fee schedule regulation that lowers payments to physicians and other clinicians. In a letter to Congressional leadership, AMGA advocated for Congress to address the Medicare conversion factor cuts by the end of the year.
“Congress must ensure a stable Medicare program that does not continue to cut payments to providers every year,” said AMGA President and CEO Jerry Penso, MD, MBA. “Over the past four years, we have faced up to 8% cuts in Medicare reimbursement, and this year we again face another reduction of 2.8%. The results of our latest survey of AMGA medical groups and health systems show the continual decreases are having a very real impact on patient services, and the expected impact of a further reduction will be much more severe. Congress can act to reverse the cut in the proposed physician fee schedule, ensuring patient access to the quality care our members provide.”
AMGA recently conducted a survey of its members, which illustrated the implications of these potential cuts. For instance, 69% of respondents reported they will be forced to implement hiring freezes/delay hires. Sixty-seven percent indicated that they will have to eliminate patient services in 2025. The survey also asked what steps medical groups have already taken. In 2024, 44% of respondents instituted hiring freezes or delayed staff hires. Forty-two percent have already eliminated services to Medicare patients in 2024. Forty-two percent responded they instituted delays in social drivers of health investments, and 54% are expected to continue these delays in 2025. AMGA created an infographic that sums up the implications of these cuts, which would result in decreased access, longer wait times, more inconvenience for patients, and decreased investments in programs that address community health issues.
For more information on AMGA’s efforts to stop the Medicare reimbursement cuts, visit amga.org/stopthecuts.
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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. For more information, please visit www.amga.org.