The following statement is attributable to:
Bruce A. Scott, M.D.
President, American Medical Association
“For those who study Medicare—such as the experts at Medicare Payment Advisory Commission (MedPAC)—and those of us on the front lines of health care, today suggests a pivotal agreement on the path toward Medicare payment reform. The American Medical Association (AMA) appreciates commissioners and staff for listening to physicians around the country.
“MedPAC today discussed recommending to indefinitely link payment updates for physician practices to the growth in the cost of providing care, a position long championed by the AMA. This policy change is needed to ensure patients will have continued access to care. It just makes sense that payment must keep pace with increasing costs. Other providers already have automatic, yearly updates, and physicians are the foundation of health care. MedPAC is likely to vote on these policy recommendations next month.
“MedPAC has plenty of evidence for the need to change its recommended approach: the rate of medical inflation is high while physician payments (PDF) have been cut for five consecutive years; physicians are abandoning private practice as they cannot make the economics work; physicians are suffering from high burnout while trying to treat their patients.
“We hope Congress pays attention. In December, Congress failed to stop the latest cut in Medicare payments—this time by 2.8%—despite practice costs rising by 3.5% according to Medicare’s own estimate. The AMA and its congressional supporters are working to reverse those cuts in the continuing resolution that must be passed by March 14 or face a government shutdown.
“For years, the AMA has pointed out that the system is unsustainable. MedPAC today bolstered that message. Will Congress listen?”
Assessing the landscape, MedPAC has navigated toward this policy change. Earlier this year, it voted to recommend tying Medicare updates to the Medicare Economic Index (MEI), or practice cost inflation for 2026. The recommended update to physician practices was for MEI minus 1 percentage point. At the meeting today, MedPAC considered a recommendation to change the baseline increase to physician payment from 0.25% (or 0.75% if participating in an alternative payment model) under current law to a portion of MEI, such as MEI minus 1 percentage point. While the AMA is seeking an annual update that fully reflects the MEI, we see this as an important step in that direction of ensuring predictability and stability for physician payment to maintain and improve access to care.
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About the American Medical Association
The American Medical Association is the physicians’ powerful ally in patient care. As the only medical association that convenes 190+ state and specialty medical societies and other critical stakeholders, the AMA represents physicians with a unified voice to all key players in health care. The AMA leverages its strength by removing the obstacles that interfere with patient care, leading the charge to prevent chronic disease and confront public health crises and, driving the future of medicine to tackle the biggest challenges in health care.
