AMA, medical societies decry pending Medicare cuts
What the groups want from Congress is action that would avert the entire 4.5% reduction to Medicare payment rates.
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In a letter to congressional leaders, the American Medical Association and every state medical society are telling Congress that any cut to Medicare payments will "undermine Medicare's ability to deliver on its promises to seniors."
What the groups want from Congress is action that would avert the entire 4.5% reduction to Medicare payment rates from being implemented on January 1, 2023. This relief, the AMA said, will help provide short-term financial stability for practices until permanent, bipartisan payment reforms are enacted.
Congress has until January 1 to avoid the cuts, which the medical groups stressed would prove harmful to seniors seeking healthcare.
"We cannot overstate the importance of Congress stopping the entirety of the upcoming 4.5% reduction," according to the letter, which was signed by all 50 state medical societies, as well as Washington, D.C.
WHAT'S THE IMPACT?
The impending 4.5% Medicare Physician Fee Schedule (MPFS) payment cut comes as medical practices throughout the country are experiencing pressures stemming from rising rates of inflation, according to the letter.
While all healthcare stakeholders struggle with steep annual payment reductions, they're exacerbated by the fact that physicians are the only providers whose Medicare payments do not automatically receive an annual inflationary update, the AMA said. This statutory flaw that characterizes the MPFS consistently leads to financial uncertainty and budgetary challenges for all physicians, according to the group.
"The stark reality is that, adjusted for inflation in practice costs, Medicare physician pay has declined 22% from 2001 to 2021," the letter read. "Allowing cuts to Medicare payments is simply unacceptable during this time of record inflation and coming on the heels of a highly disruptive pandemic."
The group contended that this contributes to burnout, stress, workload and the cumulative impact of the COVID-19 pandemic, which has one in five physicians considering leaving their practice within the next two years. The payment cuts, the AMA said, will only accelerate this trend unless the reduction is stopped in full; otherwise, it's likely that Medicare patients will struggle to access healthcare services.
"Put simply, the cost of congressional inaction is an across-the-board cut that will further amplify the financial hardship physician practices are already facing while inhibiting Medicare from delivering on its promises to seniors and future generations," according to the letter.
THE LARGER TREND
The 2023 Medicare Physician Fee Schedule final rule reflects the end of the temporary 3% supplemental increase from 2022. Physician groups are pressing for Congress to intervene to stop the cuts. Many are pushing for Congress to pass the Supporting Medicare Providers Act, H.R. 8800.
Combined with a 4% Medicare cut stemming from the Statutory Pay-As-You-Go Act, physicians said they were looking at a nearly 8.5% Medicare cut on January 1.
The American Academy of Family Physicians President Dr. Tochi Iroku-Malize said in November that the AAFP fears the final rule would result in unsustainable Medicare payment cuts for family physicians and put patients' timely access to essential primary care at risk.
"The AAFP calls on Congress to pass legislation safeguarding Medicare beneficiaries' access to comprehensive primary care and other essential services by averting payment cuts set to go into effect in 2023," Iroku-Malize said. "Congress must also invest in positive annual updates to Medicare physician payment to account for inflation in practice costs. It's past time to end the untenable physician payment cuts – which have now become an annual threat to the stability of physician practices – caused by Medicare budget neutrality requirements and the ongoing freeze in annual payment updates."
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com