House committee delays physician pay talks

The House Ways and Means Committee has delayed a markup of several healthcare bills due to scheduling conflicts and members disagreeing over legislative language, Axios reported Sept. 19.

This likely postpones adjustments to Medicare physician payments, surprise billing and rural health legislation until after this year's presidential election, according to the report. However, these issues will likely feature prominently in a lame-duck session, as physicians face a fifth consecutive cut to Medicare payments in 2025.

Several Congresspersons, including Missouri Rep. Jason Smith, chair of the Ways and Means Committee, and U.S. Rep. Richard Neal, ranking member of the committee, did not respond to Becker's request for comment. 

CMS' proposed changes to the physician fee schedule includes a 2.8% decrease to the conversion factor, which would see it drop to $32.36, down from $33.29, next year. 

"Any decrease to the Medicare conversion factor, especially when coupled with the current inflationary environment and other ongoing financial pressures — staffing shortages, increased administrative burden, and more — is unsustainable for medical groups, Anders Gilberg, senior vice president of government affairs for the Medical Group Management Association, told Becker's. "At a minimum, the full 2.8% cut must be averted ahead of the new year."

If the current political environment prevents Congress from passing a long-term solution by Dec. 31, the MGMA argues Congress must use 2025 to prioritize legislation to "stop this downward spiral" and "establish a sustainable solution that will safeguard medical groups' ability to continue providing high-quality, accessible patient care."

Chip Kahn, president and CEO of the Federation of American Hospitals, echoed Mr. Gilberg's comments in a recent statement shared with Becker's.

"Doctors and hospitals are the backbone of patient care, but without adequate resources, patients suffer," Mr. Kahn said. "At a time of high inflation and workforce challenges, it's reckless to impose real cuts on physicians and for hospital rates to fall further below the cost of providing care for seniors. Since CMS has not stepped up, Congress needs to take action to preserve patient access to high-quality care."

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