MSMS Board Examines Medicare Payment Strategy

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MSMS Board Examines Medicare Payment Strategy

MSMS Board Examines Medicare Payment Strategy

Thursday, January 30, 2025

Practice sustainability is a key organizational priority of the Michigan State Medical Society (MSMS) and Medicare reimbursement significantly impacts the financial viability of medical practices. At its January Board meeting, the MSMS Board of Directors stressed the importance of proactively reaching out to Michigan’s Congressional Delegation to advocate for immediate action to replace the current 2.8 percent payment cut with a positive update for 2025.

By failing to address the 2.8 percent Medicare physician payment reduction in the final version of the continuing resolution (CR), American Relief Act of 2025 (HR 105450), at the end of December, Congress has, for the fifth consecutive year, allowed physicians’ reimbursement under Medicare to be cut. Inclusive of this current reduction, Medicare rates have fallen 33 percent over the past two decades when adjusted for inflation in practice costs.

Because the American Relief Act of 2025 only provides fiscal year 2025 appropriations to Federal agencies through March 14, 2025, Congress will have to act during the next couple of months to avert a government shutdown. MSMS will be working with the American Medical Association (AMA) and other Federation members to advocate that Medicare payment to physicians be included in the final budget package. A new Medicare Patient Access and Practice Stabilization Act of 2025 is expected to be introduced any day.  It has been reported that this legislation proposes to eliminate the current 2.8 percent cut and implement a positive 2 percent update for 2025. Although this short-term fix is of immediate focus, the next step will be to work towards a long-term solution that will allow for annual increases that recognize increases impacting practice costs.

During the previous Congressional Session, talks of Medicare physician payment reform gained traction with many legislators. It will be critical to broaden this support in this new year and stop the annual payment cuts, financial uncertainties, and end-of-year negotiations for temporary fixes. MSMS remains vigilant in its advocacy to achieve meaningful Medicare reimbursement reforms.

Note: The AMA National Advocacy Conference is being held February 10-12, 2025. The need for Medicare payment reform will be prioritized during the Hill visits. Additionally, the AMA is hosting a special event on Capitol Hill to bring even more attention to the Medicare physician payment crisis. You can join fellow physicians during the afternoon of Feb. 11 at the historic U.S. House Cannon Caucus Room and hear directly from lawmakers working toward Medicare payment solutions. There is power in numbers: we need you at this year’s National Advocacy Conference more than ever. Register now. Please contact advocacy.events@ama-assn.org with any questions.