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The Medicare Payment Cliff: What's Next for Physicians?
February 13, 2025 by Megan Boyd

The 2.83% Medicare physician reimbursement cut took effect on January 1, 2025, marking the fifth straight year of reductions. With rising costs and decreasing reimbursement rates, independent and small practices are struggling to stay afloat. If Congress does not act, physicians will be forced to reduce the number of Medicare patients they see, potentially consolidate or sell their practices, or leave the profession entirely – limiting patient access to care, increasing wait times, and accelerating healthcare consolidation.  

The bipartisan Medicare Patient Access and Practice Stabilization Act of 2025 (H.R. 879) aims to fix this. If passed, it would:  

  • Prospectively stop the 2.83% Medicare payment cut that took effect on January 1, 2025. 
  • Provide an inflationary adjustment for the rest of the year, helping to stabilize physician payments. 
  • Result in a total positive payment adjustment of 6.62% from April 1 through December 31, 2025. 

 

Physicians and patients cannot afford further inaction. Here’s how you can help:  

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