Legislation proposes to halt Medicare physician payment cuts

Editor's Note

A January 31 statement from the American Medical Association (AMA) announces the organization’s support for bipartisan legislation aiming to reverse steep Medicare reimbursement reductions threatening physician practices and patient care access.

Introduced by a coalition of 10 House members, the "Medicare Patient Access and Practice Stabilization Act" would cancel the recent 2.83 percent Medicare payment cut and provide a 2 percent payment update. Effective April 1st, the bill also would address critical financial challenges facing physician practices, AMA claims.

AMA President Dr Bruce A. Scott emphasized that Medicare payments to physician practices have dramatically eroded when adjusted for inflation, dropping 33 percent since 2001. “Lawmakers know the trend is unsustainable and, if left unaddressed, will ultimately harm their constituents,” he said in the statement. “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.”

According to the announcement, Medicare physician payments increased by merely 7 percent between 2001 and 2025—averaging just 0.3 percent annually—while medical practice costs rose 59 percent. This disparity particularly threatens small, independent, rural, and practices serving low-income communities. Dr Scott urged physicians and patients to advocate for the bill's inclusion in the upcoming federal spending package before the March 14th continuing resolution expires.