Bill Proposes Stop to Medicare Cuts for Providers

A bipartisan group of 10 House members reintroduced a bill today to cancel the 2.83% cut of Medicare payments to physician practices that went into effect on Jan. 1, according to a news release. The bill, called The Medicare Patient Access and Practice Stabilization Act, also proposes a 2% increase to physician pay. If passed, provisions of the legislation will go into effect on April 1. A previous version of the bill was introduced in the House on Oct. 29, 2024.

“This bipartisan legislation prevents further cuts, provides a modest inflationary adjustment to help ease the cost of care, and ensures Medicare remains viable for both doctors and patients," Rep. Greg Murphy, M.D., a North Carolina Republican, said after reintroducing the Act. “The cost of caring for a Medicare patient far outpaces the reimbursement that physicians receive for seeing them. Doctors see Medicare patients out of compassion, not for financial gain.”

The federal government has until March 14 to act, when the funding provided by the American Relief Act, 2025, runs out. The act was passed on Dec. 20, 2024, to continue funding into the next administration or prevent a costly government shutdown. Other healthcare services currently being funded by the continuing resolution are the National Health Services Corps, Special Diabetes Program and funding for Community Health Centers.

Medicare pay rates for physicians have dropped 33% since 2001 when adjusted for inflation. According to an American Medical Association analysis of data from the Medicare Trustees Report and the Federal Register, physician payments have only increased 0.3% every year since 2001. The cost of running a practice has also risen by 59%

"This legislation would begin to roll back the cuts physician practices have faced over the last four years while we all have experienced high inflation," AMA president Bruce A Scott, M.D., said in the news release. "Patient access to care and practice sustainability are not partisan or geographical issues. It's an urgent national issue that demands immediate attention from Congress."