The American Medical Group Association, which represents more than 175,000 providers, are pushing back against the 2.8% cut to Medicare Part B reimbursements and a 4% across-the-board reduction tied to Medicare payments due to statutory Pay-As-You-Go rules in 2025.
In a Dec. 4 letter written to Congress, health systems and medical groups warned Congress that these cuts could trigger further layoffs, service reductions and delays in addressing social health needs.
AMGA President and CEO Jerry Penso, MD, stressed that nearly 8% in cumulative Medicare cuts over recent years — excluding the pending 2.8% reduction — have become unsustainable. An AMGA survey found that nearly 30% of its members plan layoffs, 40% have reduced Medicare services, and more than 50% expect continued delays in social health investments in 2025.
"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," AMGA President and CEO Jerry Penso, MD said. "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."
For the past three years, Congress has delayed PAYGO cuts, which equal 4% or at least $36 billion in cuts annually to Medicare. If Congress does not address the cuts by Dec. 31, access to timely, quality care will be affected, according to AMGA.
The letter to Congress was signed by 79 medical groups and health systems, including Charlotte, N.C.-based Advocate Health, Cleveland Clinic, Livonia, Mich.-based Trinity Health and Sacramento, Calif-based Sutter Health.