Medicare Payment Reform Act Seeks to Stabilize Physician Practices

After years of repeated cuts to physician payments under Medicare, the system has reached a critical point, with a 2.8% reduction set to take effect on January 1. Many believe this highlights the system’s deep flaws. Thankfully, Congress appears to be addressing this challenge, recognizing the potential threat these cuts pose to the viability of physician practices and patient care.

On Tuesday, a bipartisan group of lawmakers introduced the Medicare Patient Access and Practice Stabilization Act of 2024, which aims to support struggling physician practices and improve patient access. Leading the effort are California Representatives Jimmy Panetta (D-CA-19), Ami Bera, M.D. (D-CA-6), and Raul Ruiz, M.D. (D-CA-25), joined by their Republican colleagues Greg Murphy, M.D. (R-NC), Mariannette Miller-Meeks, M.D. (R-IA), Larry Bucshon, M.D. (R-IN), Kim Schrier, M.D. (D-WA), and John Joyce (R-PA).

The California Medical Association (CMA) has expressed strong support for the bill, which seeks to halt the scheduled 2.8% Medicare payment cut in 2025. Additionally, it proposes a partial inflation update equivalent to 50% of the Medicare Economic Index (MEI) for one year in 2025 to offset rising practice costs. If passed, this would lead to a total 4.73% increase in Medicare physician payments for the year.

Urgent Need for Legislative Action

Time is running out for Congress to act on this critical issue. With the legislative calendar winding down and a “lame-duck” session anticipated after the upcoming elections, passing HR 10073 must become a priority. Advocacy groups like CMA are urging physicians and patients to contact their representatives and push for immediate support of the bill.

“This is our last chance to ensure HR 10073 becomes part of the final year-end legislative package,” emphasized CMA representatives. They are calling on individuals to urge lawmakers to cosponsor the bill and help mitigate the impact of Medicare cuts.

Grassroots physician advocacy has already demonstrated its power. Recently, 233 bipartisan members of Congress signed a letter to House leadership, urging an end to Medicare payment cuts and requesting an inflation update before the year’s close. CMA is now asking for renewed efforts to ensure those same lawmakers back HR 10073 as cosponsors.

“Physician action makes a difference,” CMA emphasized, encouraging all healthcare professionals to rally behind the bill.

Building Toward Long-Term Reform

Although HR 10073 addresses Medicare physician payments for just 2025, it represents a critical first step in the broader effort to reform the system. The legislation provides temporary relief while opening the door for discussions about more comprehensive payment reforms in future sessions of Congress.

“This is an essential first step toward achieving our ultimate goal: long-term physician Medicare payment reform,” CMA leaders stated.

Lawmakers and medical associations are united in their assessment that the current system is unsustainable. “Everyone agrees the Medicare physician payment system is broken, and it’s time for Congress to do something about it,” advocates declared.

Take Action Now

To ensure the success of HR 10073, CMA and other advocacy groups are calling on physicians and patients to act swiftly. Contacting representatives, encouraging them to cosponsor the legislation, and raising public awareness are vital steps in securing its passage.

If successful, the Medicare Patient Access and Practice Stabilization Act will provide temporary stability for physician practices, ensuring better access to care for patients while paving the way for long-overdue reforms to the Medicare payment system.