SHM Joins the Federation Letter Urging Congress to Stop Medicare Pay Cuts
November 15, 2024
The Honorable Mike Johnson
Speaker
United States House of Representatives
H-232, The Capitol
Washington, DC 20515
The Honorable Charles Schumer
Majority Leader
United States Senate
S-221, The Capitol
Washington, DC 20510
The Honorable Mitch McConnell
Republican Leader
S-230, The Capitol
Washington, DC 20510
The Honorable Hakeem Jeffries
Democratic Leader
H-204, The Capitol
Washington, DC 20515
Dear Speaker Johnson, Majority Leader Schumer, Minority Leader McConnell, and Minority Leader Jeffries:
The undersigned national medical societies and state medical associations write to urgently request that Congress pass legislation to both prevent the scheduled 2.83 percent Medicare physician payment cut and, critically, provide a positive payment update for 2025. Absent Congressional intervention, this most recent cut, which was finalized in the November 1st Medicare Physician Fee Schedule (MPFS) Final Rule, marks the fifth consecutive year of reductions in Medicare physician payments. Without federal legislation that provides a payment increase reflecting rising inflationary pressures, patient access will suffer and the sustainability of
physician practices across the country, particularly in rural and underserved communities, will be threatened.
The recently finalized MPFS rule underscores the severity of this issue: while the Medicare Economic Index (MEI)—the measure for physician practice cost inflation—will increase by 3.5 percent, physicians will not receive an update reflective of inflation. Conversely, Medicare payments to physicians actually declined by 29% over the last two decades, when adjusted for inflation in practice costs. Without Congressional intervention, this imbalance will deepen the gap between rising practice costs and Medicare reimbursement, straining the ability of practices to remain viable and serve their Medicare patients.
In October, 233 of your colleagues from both parties signed a Dear Colleague letter led by Representatives Mariannette Miller-Meeks, MD1(R-IA) and Jimmy Panettaa (D-CA)2 urging expeditious Congressional action to address these concerns. The letter emphasized the urgent need to stop the approximately 2.83 percent payment cut, reform budget neutrality requirements, and provide a payment increase that accounts for inflationary pressures in 2025. The strong, bipartisan support generated by the October letter reflects a shared commitment within Congress to safeguard Medicare and ensure seniors retain access to care.
Thankfully, a strong collection of bipartisan lawmakers has introduced a legislative solution to this time-sensitive Medicare payment problem. The undersigned organizations strongly support H.R. 10073, the Medicare Patient Access and Practice Stabilization Act of 20243. This bipartisan bill would replace the 2.83 percent cut with a 1.8 percent payment update, which is equivalent to half of the MEI increase forecasted for 2025. This update is the same amount recommended by the Medicare Payment Advisory Commission (MedPAC) to avoid problems with patient access to care in the Medicare program forecasted under the current payment system. By securing a positive update that aligns with a portion of rising practice expenses, Congress can provide essential stability for physicians in 2025 allowing time for comprehensive reform to the Medicare physician payment system to begin in earnest in the 119th Congress.
We urge Congress to pass H.R. 10073 before the conclusion of the 118th Congress. This legislation will serve as a bridge to broader reform while averting an impending cut that threatens both practice solvency and patient access to care. As always, our organizations are ready to work alongside Congress to achieve lasting reforms that ensure a stable and equitable
Medicare payment system.
Sincerely,
American Medical Association
Academy of Physicians in Clinical Research
American Academy of Allergy, Asthma & Immunology
American Academy of Dermatology Association
American Academy of Emergency Medicine
American Academy of Facial Plastic and Reconstructive Surgery
American Academy of Family Physicians
American Academy of Hospice and Palliative Medicine
American Academy of Ophthalmology
American Academy of Otolaryngology- Head & Neck Surgery
American Academy of Pain Medicine
American Academy of Physical Medicine and Rehabilitation
American Academy of Sleep Medicine
American Association for Hand Surgery
American Association of Neurological Surgeons
American Association of Neuromuscular & Electrodiagnostic Medicine
American Association of Orthopaedic Surgeons
American College of Allergy, Asthma and Immunology
American College of Cardiology
American College of Chest Physicians (CHEST)
American College of Emergency Physicians
American College of Gastroenterology
American College of Legal Medicine
American College of Medical Genetics and Genomics
American College of Obstetricians and Gynecologists
American College of Physicians
American College of Radiation Oncology
American College of Radiology
American College of Rheumatology
American College of Surgeons
American Gastroenterological Association
American Geriatrics Society
American Medical Group Association
American Osteopathic Association
American Psychiatric Association
American Society for Clinical Pathology
American Society for Dermatologic Surgery Association
American Society for Gastrointestinal Endoscopy
American Society for Laser Medicine & Surgery, Inc.
American Society for Radiation Oncology
American Society of Addiction Medicine
American Society of Cataract & Refractive Surgery
American Society of Hematology
American Society of Nephrology
American Society of Neuroradiology
American Society of Nuclear Cardiology
American Society of Plastic Surgeons
American Society of Regional Anesthesia and Pain Medicine
American Society of Retina Specialists
American Society of Transplant Surgeons
American Urogynecologic Society
American Urological Association
American Venous Forum
Association for Clinical Oncology
College of American Pathologists
Congress of Neurological Surgeons
Endocrine Society
Heart Rhythm Society
Infectious Diseases Society of America
International Pain and Spine Intervention Society
Medical Group Management Association
National Association of Spine Specialists
National Medical Association
North American Neuromodulation Society
North American Spine Society
Outpatient Endovascular and Interventional Society
Post-Acute and Long-Term Care Medical Association
Renal Physicians Association
Society for Cardiovascular Angiography and Interventions
Society for Pediatric Dermatology
Society for Vascular Surgery
Society of American Gastrointestinal and Endoscopic Surgeons (SAGES)
Society of Cardiovascular Computed Tomography
Society of Critical Care Medicine
Society of Hospital Medicine
Society of Interventional Radiology
The American Society of Dermatopathology
The Society of Thoracic Surgeons
Medical Association of the State of Alabama
Alaska State Medical Association
Arizona Medical Association
Arkansas Medical Society
California Medical Association
Colorado Medical Society
Connecticut State Medical Society
Medical Society of Delaware
Medical Society of the District of Columbia
Florida Medical Association
Medical Association Georgia
Hawaii Medical Association
Idaho Medical Association
Illinois State Medical Society
Indiana State Medical Association
Iowa Medical Society
Kansas Medical Society
Kentucky Medical Association
Louisiana State Medical Society
Maine Medical Association
MedChi, The Maryland State Medical Society
Massachusetts Medical Society
Michigan State Medical Society
Minnesota Medical Association
Mississippi State Medical Association
Missouri State Medical Association
Montana Medical Association
Nebraska Medical Association
Nevada State Medical Association
New Hampshire Medical Society
Medical Society of New Jersey
New Mexico Medical Society
Medical Society of the State of New York
North Carolina Medical Society
North Dakota Medical Association
Ohio State Medical Association
Oklahoma State Medical Association
Oregon Medical Association
Pennsylvania Medical Society
Rhode Island Medical Society
South Carolina Medical Association
South Dakota State Medical Association
Tennessee Medical Association
Texas Medical Association
Utah Medical Association
Vermont Medical Society
The Medical Society of Virginia
Washington State Medical Association
West Virginia State Medical Association
Wisconsin Medical Society
Wyoming Medical Society