Massachusetts Medical Society: Medicare Payment Reform

Medicare Payment Reform

Medicare Payment Reform

THE ISSUE

Year after year, physicians face numerous Medicare payment cuts that threaten practice viability and patient access to care. Each year, the Medical Society calls on Congress to take legislative action to avert or minimize the impact of these cuts. Historically, some portion of these proposed cuts have been avoided, but this annual exercise leaves physicians uncertain about what level of Medicare payment to expect, how negatively impacted their practice will be, and to what extent their patients will be impacted. The combined effects of continued statutory freezes, rising inflation, and pandemic disruptions jeopardize the financial stability of physician practices and offer no support for practice innovation. Practice costs have increased 47 percent between 2001 and 2023, while Medicare payments increased only 9% in that same time. As one of the few Medicare providers without a payment update tied to inflation, inflation-adjusted payment rates for physicians have declined 26% from 2001 to 2023. Medicare physician payments are further eroded by frequent and large payment redistributions caused by budget neutrality adjustments. Over the years, temporary patches and ongoing cuts to the Medicare physician payment system have left physician practices and patient access to care at serious risk.

Currently, providers across the country face significant financial hardship due to higher practice operating costs and the impact of COVID-19. Financial uncertainty due to payment cuts will only compound these challenges. It is essential that we make sure providers have the resources they need to keep their doors open for seniors and families. Failure to reform the Medicare payment system in a stable and sustainable fashion will result in reduced staffing levels and office closures, jeopardizing patient access to care. The impact in rural and underserved communities is most concerning, as payment cuts will continue to perpetuate and exacerbate disparities in health and health care. Failure to act on long-term reforms will undermine Medicare’s ability to deliver on its promises to future generations, as ever increasing practice costs and decreasing Medicare payment rates leave practices with insufficient resources to provide the comprehensive, quality care Medicare patients deserve.

OUR STANCE

The Medical Society believes that we must reform the Medicare payment system in a way that leads to reliable, stable, and sustainable payment, providing financial stability while keeping the system fiscally responsible over the long term. Changes to the Medicare payment system should encourage innovation by promoting collaboration and patient choice rather than consolidation and should incentivize value-based care. Any reform to the system needs to continue prioritizing health equity and reducing disparities while supporting physician practices that care for underserved populations.

OUR ADVOCACY

  • The MMS launched grassroots efforts, resulting in hundreds of physician letters being sent to members of Congress in support of reforming the Medicare payment system. In 2023, we are supporting H.R. 6683, the Preserving Seniors’ Timely Access to Physicians Act, which will eliminate the pending 3.4% payment cuts in the Medicare program that will otherwise go into effect in January 2024.
  • The MMS supports H.R.2474, the Strengthening Medicare for Patients and Providers Act, which makes key changes to how Medicare calculates physician practice payment.
  • The MMS worked with the AMA to develop Characteristics of a Rational Medicare Payment System, meant to be used as a general framework of principles for Medicare payment reform.
  • In Washington, DC, the MMS advocates for bringing the physician perspective on the impact of the current Medicare payment system to the offices of our Congressional delegation.
  • The MMS submits annual detailed comments on the proposed Medicare Physician Fee Schedule rule.

Use the link above to contact your legislator and tell Congress to stop Medicare payment cuts.


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