Rep. Panetta Leads 232 House Members Urging Action to Address Doc Cuts Before 2025
Monterey, CA – United States Representative Jimmy Panetta (CA-19) led 232 House members in urging House Speaker Mike Johnson (R-LA) and Minority Leader Hakeem Jeffries (D-NY) to address the scheduled 2.8% cut in reimbursement for physicians who participate in Medicare before the end of the 118th Congress. With rising provider costs, the proposed 2025 Medicare physician payment schedule would threaten to impact patient care, especially for rural Americans, and contribute to provider burnout, which is already straining the healthcare workforce. Rep. Panetta led the bipartisan coalition alongside Rep. Mariannette Miller-Meeks (IA-01).
“Increased instability in the healthcare sector due to looming cost hikes impacts the ability of physicians and clinicians to provide the highest quality of care and threatens patient access to affordable healthcare,” wrote the members. “To prevent the very real scenario of insufficient access to physicians and other clinicians treating Medicare patients, Congress must stop the 2.8 percent payment cut from occurring in 2025, enact targeted reforms to statutory budget neutrality requirements, and provide physicians with a payment update reflective of inflationary pressures. We stand ready to work with you to pass crucial bipartisan legislative initiatives before the conclusion of the 118th Congress.”
“As physicians face yet another year of pending cuts stemming from the Medicare Physician Fee Schedule, the AMA appreciates that a majority of House members cosigned a letter urging Congress to stop this harmful cycle,” said American Medical Association President Bruce A. Scott, M.D. “This unsustainable onslaught of annual cuts must cease, and physicians must receive a long-overdue and desperately needed payment increase. We applaud Reps. Miller-Meeks and Panetta for their leadership and thank the more than 218 bipartisan members of Congress who recognized that the status quo is not an option. We need Congress to Fix Medicare STAT!”
“We applaud the work done by Rep. Mariannette Miller-Meeks, MD (IA-01), Jimmy Panetta (CA-19), Ami Bera, MD (CA-06), Larry Bucshon, MD (IN-08), Kim Schrier, MD (WA-08), Greg Murphy, MD (NC-3), John Joyce, MD (PA-13), and Raul Ruiz, MD (CA-25) to gain support from more than 200 House members to prevent the upcoming cuts to Medicare part B payments in January,” said American Medical Group Association (AMGA) President and CEO Jerry Penso, M.D., M.B.A. “We are thankful for this strong showing by House members and encourage Congress to prevent these cuts so that AMGA members can continue to put the health of their communities, and not cost reductions, first.”
The full text of the letter is below.
Dear Speaker Johnson and Minority Leader Jeffries:
The undersigned bipartisan members of Congress write to urge you to expeditiously pass legislative fixes that not only stop another damaging round of cuts to Medicare payments, but also provide greater certainty and stability for clinicians serving Medicare beneficiaries. On July 10, the U.S. Centers for Medicare & Medicaid Services (CMS) released the Calendar Year (CY) 2025 Medicare Physician Fee Schedule (MPFS) Proposed Rule, which includes provisions subjecting all physicians and other clinicians treating Medicare patients to a 2.8 percent payment cut. In lieu of these harmful cuts, which, absent federal legislation, will take effect on January 1, 2025, Congress must pass a bill providing physicians and other clinicians with a payment update that takes into account the cost of delivering care to patients.
The scheduled 2.8 percent reduction represents the fifth consecutive year that CMS issued a fee schedule regulation lowering payments to physicians and other clinicians. While Congress has intervened in the past four years to mitigate portions of these cuts, the fact remains that the MPFS is inherently broken. Continued payment cuts undermine the ability of independent clinical practices—especially in rural and underserved areas—to care for their community, which reduces patient access to care. These ongoing cuts have forced medical groups and integrated systems of care to make difficult choices, such as imposing hiring freezes, delaying system improvements, postponing transitions to value-based care models, and potentially eliminating services. Because healthcare often comprises a large percentage of employment in rural areas, the closure of independent practices not only lessens patient access to care but also jeopardizes the livelihood of rural Americans.
Over the last two decades, Medicare payment rates have fallen by 29 percent when adjusted for the costs of running a practice. Additionally, compliance with the Merit-based Incentive Payment System (MIPS) is both expensive and a flawed method of measuring quality and costs of care, resulting in steep and unfair penalties. These payment cuts and MIPS compliance costs also come on the heels of the extremely disruptive COVID-19 public health emergency and the Change Healthcare cyberattack.
The CY 2025 MPFS Proposed Rule highlights that the estimated cost of running a practice—covering expenses like rent, staff compensation, and purchasing supplies and equipment—is expected to increase substantially next year. This widening gap between what Medicare pays and the cost of delivering quality care to patients demands Congressional intervention.
Thankfully, bipartisan lawmakers have come together to propose several legislative solutions aimed at providing permanent relief from the long-term problems plaguing the Medicare payment system. We urge Congressional Leadership to move legislation that provides physicians and other clinicians with a permanent, annual inflationary update in Medicare equivalent to the Medicare Economic Index (MEI). We also request targeted reforms to statutory MPFS budget neutrality requirements, raising the current MPFS budget neutrality threshold to reflect 2024 dollars, requiring CMS to cross-check utilization assumptions associated with newly unbundled codes that trigger budget neutrality cuts, mandating CMS to review key elements of practice expense costs every five years, and limiting changes to the MPFS conversion factor to no more than 2.5 percent in a given year. Some of these legislative solutions have already passed the Energy and Commerce Committee in 2023 with strong bipartisan support. Moreover, we urge Congressional Leadership to utilize bipartisan offsets as we address all issues pertaining to Medicare payments to physicians and other clinicians.
Increased instability in the healthcare sector due to looming cost hikes impacts the ability of physicians and clinicians to provide the highest quality of care and threatens patient access to affordable healthcare. Rural physicians and other clinicians, along with those treating underserved populations, are facing the most daunting challenge of trying to provide care in the wake of devastating reimbursement cuts. To prevent the very real scenario of insufficient access to physicians and other clinicians treating Medicare patients, Congress must stop the 2.8 percent payment cut from occurring in 2025, enact targeted reforms to statutory budget neutrality requirements, and provide physicians with a payment update reflective of inflationary pressures. We stand ready to work with you to pass crucial bipartisan legislative initiatives before the conclusion of the 118th Congress.
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