On December 20, 2024, just hours before the funding deadline, Congress passed the American Relief Act of 2025 (H.R. 10545), a year-end funding bill with significant healthcare implications. However, it failed to address the longstanding issue of the lack of inflationary updates to Medicare physician reimbursement under the Medicare Physician Fee Schedule (MPFS). As a result, the proposed -2.83% reduction in the Conversion Factor (CF) went into effect on January 1, 2025, marking the fifth consecutive year of cuts. This highlights the urgent need for a sustainable, bipartisan solution to support physicians and their patients. 

While the reduction to the CF was not addressed, the bill did include some positive provisions for physicians and hospitals, including: 

• Telehealth services were extended through April 1, 2025. 
•  PAYGO fix avoided an additional -4% cut to the MPFS.  
• The Geographic Practice Cost Index (GPCI) floor was retained at 1%.  
• Payment cuts to disproportionate share hospitals were eliminated.  

While these measures provide temporary relief, they do not address the broader systemic challenges facing physician reimbursement. 

Looking ahead, Zotec remains committed to advocating for a long-term fix to the MPFS. Legislative efforts, such as H.R. 2474 and H.R. 10073, will need to be reintroduced in the upcoming 119th Congress to address these critical issues. We encourage healthcare professionals to join our advocacy efforts by texting ZOTEC to 50457 to become an advocate, take action, and stay engaged. Expect further updates and a call to action in early January.