Medicare Cuts Threaten Patient Access to Care

AMGA Calls on Congress to Act and Reverse Payment Cuts

Alexandria, VA – AMGA members report cuts in Medicare reimbursement will restrict access to existing Medicare beneficiaries, force the elimination of services, and result in furloughs and layoffs of both clinical and nonclinical staff. Based on a survey of AMGA members, the drastic actions demonstrate the need for Congress to ensure Medicare appropriately reimburses physician group practices and integrated systems of care by reversing the 2.83% cut to the Medicare Part B conversion factor that took effect earlier this year. 

“Either the conversion factor rate gets fixed or Medicare beneficiaries lose access to care. The Medicare reimbursement system may be complex, but this matter is just that simple,” said AMGA President and CEO Jerry Penso, MD, MBA. “The cuts are compounded by almost 11% in cumulative decreases over the past five years and have created a crisis in healthcare delivery. We need Congress as a partner in our mission to provide the best care possible to patients, and the first step in that process is stopping these cuts now.”  

AMGA recently surveyed its membership on what actions they are taking after the implemented conversion factor cuts in January 2025. Forty percent of AMGA respondents eliminated services to Medicare patients. Twenty-five percent of respondents furloughed or laid off clinical staff; thirty-one percent of respondents furloughed or laid off nonclinical staff. Thirteen percent of survey respondents are not accepting new Medicare patients this year. The survey results are available on the AMGA website. 

In addition to reversing these Medicare cuts, Congress needs to address other AMGA priorities, including permanently eliminating the geographic and originating site restrictions for telehealth services, preventing Medicaid Disproportionate Share Hospital payment cuts, continuing the Advanced Alternative Payment Model Bonus Program, and extending the Hospital at Home Program.  

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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.