The recent white paper by the United States Senate Finance Committee highlights the stark reality that Medicare physician reimbursement has declined by 20 percent between 2001 and 2021. Physicians reliant on the Medicare physician fee schedule (MPFS) for payment face financial stress due to the lack of inflationary adjustments and annual decreases in reimbursement. 

The failure of Medicare to reimburse physicians fairly and the lack of inflationary updates have created additional, unnecessary challenges for physicians. With the rise of inflation, physicians are dealing with a widening gap between expenses and payments. Unfortunately, there is a clear discrepancy between what the federal government pays physicians and the cost of operating a practice.  

Despite inadequate reimbursement, many physicians continue to provide care for Medicare and Medicaid patients, driven by their commitment to helping their patients. If these current trends persist, both physicians and patients will be adversely affected. Patients already face difficulty accessing care, and now physicians may be forced to stop providing care for Medicare patients or leave the profession altogether.  

Collaborative efforts must be taken to address the broken state of the healthcare system and prevent it from worsening. Enhancing reimbursement rates, streamlining billing procedures, and alleviating burdens on physicians and patients alike are the right places to start.