Leading Medical Groups and Health Systems Call on Congress to Stop Medicare Cuts

27 million Patients and 126,000 Providers Represented by Signers

Alexandria, VA – AMGA members today objected to the proposed 2.8% cut to Medicare Part B reimbursements and a 4% across-the-board cut to Medicare payments due to statutory Pay-As-You-Go (PAYGO) rules. Those signing a letter(Opens in a new window) sent to Congressional leadership represent nearly 126,000 providers who provide care to approximately 27 million patients. 

In the letter, the multispecialty medical groups and health systems indicated that the cuts will significantly impact their ability to provide care to their patients and communities. If these reductions are not addressed, groups will be forced to continue to lay off or furlough staff, eliminate services, and delay social drivers of health investments.    

“We urge Congress to listen to those on the front line of delivering care. We’re clearly hearing that the continued strain on our provider organizations brought on by multiple years of cuts to the conversion factor is unsustainable,” said AMGA President and CEO Jerry Penso, MD, MBA. “As indicated in our survey results, our organizations are being forced to consider policies impacting patient access and care. No healthcare group wants to be left with only those choices—their mission is improving the health of their communities. We need Congress’ help to continue that mission.” 

Over the past four years, medical groups and health systems have experienced almost 8% in cumulative cuts to Medicare Part B reimbursements, which is not factoring in the 2.8% cut that will be implemented in 2025. In August, AMGA surveyed its membership on what actions these Medicare cuts would force them to take. Close to 30% of respondents said they would be forced to furlough or lay off employees. Also, 40% of these provider groups eliminated services to Medicare patients in 2024, and 55% expect to continue in 2025. About 40% of respondents instituted delays in social drivers of health investments in 2024, and 57% are expected to continue these delays in 2025. The survey results are available on the AMGA website.

For the past three years, Congress has delayed PAYGO cuts, which equal 4% or at least $36 billion in cuts annually to the Medicare program. If Congress fails to address these cuts by Dec. 31, access to timely, quality care will be impacted. 

The letter is available on the AMGA website.  

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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.