A bipartisan group of 10 House members introduced a bill recently to stop the 2.83 percent cut in Medicare payments to physician practices this year while providing a 2 percent payment update, aiming to stabilize physician practices and protect patients’ access to care.
The AMA strongly supports the legislation and will work with members to include it in upcoming legislation to fund the federal government beyond the March 14th statutory deadline.
Reps. Greg Murphy, M.D. (R-NC) and Jimmy Panetta (D-CA), along with eight other House members, introduced the “Medicare Patient Access and Practice Stabilization Act (PDF).” This legislation, effective April 1st, would prospectively cancel the 2.83 percent cut that went into effect on Jan 1. Similar legislation enjoyed bipartisan, bicameral support, but Congress failed to address the issue during the lame duck session.
“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,” said AMA President Bruce A. Scott, M.D. “As evidenced by this bipartisan legislation, lawmakers know the trend is unsustainable and, if left unaddressed, will ultimately harm their constituents. Patient access to care and practice sustainability are not partisan or geographical issues. It’s an urgent national issue that demands immediate attention from Congress.”
When adjusted for inflation, Medicare payment to physician practices has dropped 33 percent (PDF) since 2001. According to an AMA analysis of data from the Medicare Trustees Report and the Federal Register, Medicare physician payments increased by only 7 percent between 2001 and 2025, or just 0.3 percent per year. Meanwhile, the cost of running a medical practice—which includes everything from office rent and staff salaries to electronic medical records and liability insurance premiums—rose by 59 percent.
If Congress fails to act, the impact is likely to be most severe for small, independent and rural physician practices and those treating low-income or marginalized patient communities.
“The clock is ticking. The continuing resolution expires on March 14. Physicians are healers first, but we are asking them to become vocal advocates for their patients over the next 45 days by contacting their members of Congress and urging them to include this bill in the next spending package. Patients, particularly Medicare recipients and anyone with a family member on Medicare, should do likewise” Dr. Scott said.
About the American Medical Association
The American Medical Association is the physicians’ powerful ally in patient care. As the only medical association that convenes 190+ state and specialty medical societies and other critical stakeholders, the AMA represents physicians with a unified voice to all key players in health care. The AMA leverages its strength by removing the obstacles that interfere with patient care, leading the charge to prevent chronic disease and confront public health crises and, driving the future of medicine to tackle the biggest challenges in health care.