Leaders on Capitol Hill have wrapped up legislative business for 2023, but the American Medical Association is urging lawmakers to address after the holidays the 3.34% Medicare physician fee cut that is set to take effect Jan.1.
CMS' physician fee schedule conversion factor is set to decrease by $1.15 (3.37%) to $32.74 in 2024.
The AMA argues that continued Medicare physician fee cuts will reduce patient access to care and jeopardize physician practices, many of which are still battling to improve their financial standing after a challenging three years due to the COVID-19 pandemic.
The Preserving Seniors' Access to Physicians Act, introduced by Rep. Greg Murphy, MD, R-Texas, aims to completely eliminate the physician fee schedule cuts. Additionally, the 2024 National Defense Authorization bill, which is expected to be signed by President Joe Biden, includes $2.2 billion in sequester cuts for physicians in a Medicare Improvement Fund — more than enough funding to stop the 3.37% cuts in their entirety, according to the AMA.
"Facing a nearly 10% reduction in Medicare payments over the past four years and rising practice costs on top of the burdens and burnout of three years of COVID-19, for many physicians, continuing down this road is unsustainable," AMA President Jesse Ehrenfeld, MD, said in a Dec. 15 news release. "These cuts will be felt first and hardest in rural and underserved areas that continue to face significant healthcare access challenges. Medicare physicians do not receive inflationary payment updates, which is why eliminating these cuts is so crucial."