MGMA urges Congress to avert Medicare payment cut (November 15, 2024)

November 15, 2024 

Dear Speaker Johnson, Majority Leader Schumer, Minority Leader McConnell, and Minority Leader Jeffries:

The undersigned national medical societies and state medical associations write to urgently request that Congress pass legislation to both prevent the scheduled 2.83 percent Medicare physician payment cut and, critically, provide a positive payment update for 2025. Absent Congressional intervention, this most recent cut, which was finalized in the November 1st Medicare Physician Fee Schedule (MPFS) Final Rule, marks the fifth consecutive year of reductions in Medicare physician payments. Without federal legislation that provides a payment increase reflecting rising inflationary pressures, patient access will suffer and the sustainability of physician practices across the country, particularly in rural and underserved communities, will be threatened.

The recently finalized MPFS rule underscores the severity of this issue: while the Medicare Economic Index (MEI)—the measure for physician practice cost inflation—will increase by 3.5 percent, physicians will not receive an update reflective of inflation. Conversely, Medicare payments to physicians actually declined by 29% over the last two decades, when adjusted for inflation in practice costs. Without Congressional intervention, this imbalance will deepen the gap between rising practice costs and Medicare reimbursement, straining the ability of practices to remain viable and serve their Medicare patients.

View the full letter