Spending bill gives physicians 1.68% pay increase but overall decrease remains
Medical groups would still be left with a 1.69% reduction in reimbursement for 2024.
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A House bill that passed on Wednesday importantly would lessen the cut to physician payment.
A 3.34% physician payment reduction began January 1. The legislation proposes a prospective increase of 1.68% to Medicare physician reimbursement effective March 9, according to MGMA.
Medical groups would still be left with a 1.69% reduction in reimbursement for the rest of the year.
"I have seen several interpretations of the math surrounding the 2024 physician Medicare cut. Let's be clear. A cut is still a cut," said Anders Gilberg, senior vice president of Government Affairs for MGMA, in a post on X.
The House in a 339-85 vote on Wednesday passed a package of six appropriations bills that would fund certain federal agencies through the end of the year, according to the American Hospital Association.
The bill containing several healthcare provisions now goes to the Senate and is expected to land on President Biden's desk by a Friday deadline.
WHY THIS MATTERS
Dr. Jesse Ehrenfeld, president of the American Medical Association, said the AMA is "extremely disappointed that about half of the 2024 Medicare physician payment cuts will be allowed to continue. There were many opportunities and widespread support to block the 3.37% Medicare cuts for physician services that took place January 1, but in the end Congress opted to reverse only 1.68 of the 3.37 percentage payment reduction required by the Medicare Fee Schedule. The need to stop the annual cycle of pay cuts and patches and enact permanent Medicare payment reforms could not be more clear."
Physicians are the only providers who do not receive automatic inflation updates to their Medicare payments, he said.
Physician groups maintain Medicare payment cuts could prompt more doctors to opt out of the Medicare program, according to KFF. About 1% opted out in 2023, according to KFF analysis.
THE LARGER TREND
The healthcare provisions in the bill would eliminate Medicaid disproportionate share hospital cuts for FY 2024 and delay DSH cuts to January 1, 2025, the AHA said.
It would extend the Medicare-dependent hospital and enhanced low-volume hospital programs through December 2024.
It also extends the Community Health Centers, National Health Service Corps, and Teaching Health Centers Graduate Medical Education programs through December.
The package does not include site-neutral payment cuts to hospitals or changes to current Hospital Price Transparency rule requirements, AHA said.
Email the writer: SMorse@himss.org
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