Physicians face another showdown with Congress as a Medicare payment cut looms for 2025. The recently released 2025 Medicare Physician Fee Schedule (PFS) Proposed Rule confirms a 2.8 percent cut to the Medicare conversion factor — the starting point for calculating Medicare payments — will take effect next year without congressional intervention. This is the fifth straight year the conversion factor is set to decrease. 

This cut is largely the result of the expiration of a 2.93 percent temporary update to the conversion factor at the end of 2024 and a 0 percent baseline update for 2025 under the Medicare Access and CHIP Reauthorization Act (MACRA). These cuts coincide with ongoing growth in the cost of practicing medicine as the Centers for Medicare and Medicaid Services projects the increase in the Medicare Economic Index (MEI) for 2025 will be 3.6 percent.

Congressional committees have started conversations on reforming MACRA, and now is the time to urge them to continue these negotiations in earnest given the cuts in the latest proposed rule and to enact legislation. ASGE is asking Congress to act on bills or future legislation which reforms MACRA along four key pillars:

1. Enacting an annual, permanent inflationary payment update in Medicare that is tied to the Medicare Economic Index (MEI) (H.R. 2474);
2. Budget Neutrality reforms (H.R. 6371);
3. An overhaul of MACRA’s Merit-based Incentive Payment System (MIPS); and
4. Modifications to Alternative Payment Models (APM) (S. 3503/H.R. 5013).

Lawmakers need to hear from physicians about why legislative action is needed this year.

Take action today.