Advocacy Update

Dec. 6, 2024: Medicare Payment Reform Advocacy Update

| 2 Min Read
Contents
  1. AMA comments on MedPAC's long-term physician payment update policy options
  2. More articles in this issue
AMA comments on MedPAC's long-term physician payment update policy options

AMA comments on MedPAC's long-term physician payment update policy options

In a recent letter (PDF), the AMA commended the Medicare Payment Advisory Commission (MedPAC) for acknowledging the unsustainable trajectory of the current Medicare physician payment system and for exploring ways to increase the default physician payment update on a continuing basis to account for increases in the costs to run a medical practice. 

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At their November 2024 meeting, MedPAC discussed recommending that Congress replace the differential conversion factor updates of 0.75 percent for qualifying participants in advanced alternative payment models and 0.25 percent updates for all other physicians and qualified health care professionals that take effect in 2026 under current law, with a single conversion factor and an annual update tied to the Medicare Economic Index (MEI).  

The AMA deeply appreciates that MedPAC is considering recommending that Congress put in place automatic, yearly updates to physician payments and that Congress make those updates permanent, so they are built into the baseline in future years. The letter strongly urged MedPAC to recommend that Congress replace current law with annual updates to physician payment based on the full increase in inflation as measured by the MEI to ensure predictability and stability for physician payment and to maintain or improve access to care. 

In addition, the AMA also commented on MedPAC’s discussion about payment accuracy within the Medicare Physician Payment Schedule and agreed with Commissioners who emphasized the need to prioritize an inflation-based update. This discussion is separate from MedPAC’s annual recommendations on Medicare physician payment adequacy, which resulted in recommendations that Congress update physician payment by 50 percent of MEI for calendar years 2024 and 2025. The AMA anticipates that MedPAC will make a final recommendation regarding long-term Medicare physician payment reform in its June 2025 report to Congress.

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Table of Contents

  1. AMA comments on MedPAC's long-term physician payment update policy options
  2. More articles in this issue

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