Legislation to block cuts to Medicare payments for physicians is back on the table.
On Jan. 31, U.S. Rep. Greg Murphy, who has a background as a medical doctor, reintroduced the bipartisan “Medicare Patient Access and Practice Stabilization Act.” A 2024 version of the bill was previously introduced in October.
“Physicians in America are facing unprecedented financial viability challenges due to continued Medicare cuts,” Murphy, a Republican from North Carolina, said in a statement. “Access to affordable and quality health care for millions of seniors is in severe jeopardy.”
On Jan. 1 of 2025, a 2.83% Medicare reimbursement cut went into effect for physicians due to a rule finalized by the U.S. Centers for Medicare & Medicaid Services (CMS) last fall. When combined with increased practice costs, inflation and other factors, physicians may be on the hook for steep financial losses in 2025, some health care groups warn.
When adjusted for inflation, Medicare reimbursement for physician services has declined 33% from 2001 to 2025, according to the American Medical Association (AMA).
If passed, the Medicare Patient Access and Practice Stabilization Act would attempt to offset cuts that came in the early part of the year. If enacted, it would stop the cuts come April 1, giving Physicians a 6.62% reimbursement bump that then extends through the remainder of 2025.
The bill has widespread support.
In Congress, the several co-sponsors for the legislation include Reps. Jimmy Panetta (D-Calif.), John Joyce, M.D. (R-Pennsylvania), Raul Ruiz, M.D. (D-Calif.), Mariannette Miller-Meeks, M.D. (R-Iowa), Kim Schrier, M.D. (D-Wash.), and Claudia Tenney (R-N.Y.), among others.
“Financial stability for providers isn’t just a matter of fairness – it’s essential for protecting access to care, particularly in rural and underserved areas like western New York where physician shortages have been a persistent challenge,” Congresswoman Tenney said in a statement. “The rising cost of delivering care, coupled with increasing administrative burdens, makes it clear that Medicare payment policies must evolve to reflect the true costs faced by physicians.”
AMA has been one of the strongest supporters of the legislation.
“This legislation would begin to roll back the cuts physician practices have faced over the last four years while we all have experienced high inflation,” AMA President Bruce A. Scott, M.D., said in a statement. “As evidenced by this bipartisan legislation, lawmakers know the trend is unsustainable and, if left unaddressed, will ultimately harm their constituents.”
