Act now to halt the Jan. 1 Medicare physician payment cut
  • Medicare Part B physicians, including OMSs began incurring a 2.83 percent cut on Jan. 1, which comes on top of a 1.69 percent cut in 2024.
  • The payment cut impacts all OMSs – not just Medicare providers – as health insurers often base their payments on Medicare payment rates.
  • The payment reduction stems from a combination of budget neutrality requirements across the Medicare provider program as required by federal statute, and the absence of a required inflationary update for provider payments.
  • According to an American Medical Association (AMA) analysis of Medicare Trustees data, when adjusted for inflation, Medicare payments to clinicians have declined by 33 percent since 2001.
  • Physicians also are the only Medicare provider group that does not receive an inflationary update. 
  • Congress has the statutory authority to intervene to prevent this cut; however, they failed to do so before adjourning at the end of last year, and Congress recently failed to include a legislative fix in the recently enacted fiscal year 2025 funding bill. 
  • AAOMS strongly urges Congress to act swiftly to pass the Medicare Patient Access and Practice Stabilization Act (HR 879). The legislation would provide a 6.62 percent payment update effective April 1 through the end of the year to offset the existing cut and account for inflation.
     
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