The federal spending bill passed earlier this month includes policies addressing cuts to the Medicare Physician Fee Schedule (MPFS) that went into effect at the beginning of this year 2024.
Earlier this year, a 3.37% cut to the MPFS went into effect. The just passed $460 billion spending package reduced the cut from 3.37% to 1.69%. The new rate went into effect earlier this month (March) and runs to the end of the year. There is not a provision for retroactive claims processing.
This reduction appears to respond to some of the concerns regarding physician pay cuts. However, the response of many of the leading medical organizations has been to point out that there may be larger issues.
Adam Bruggeman, M.D., FAAOS, FAOrthA, chair of the American Academy of Orthopaedic Surgeons (AAOS) Advocacy Council, said, in a statement for AAOS: “We appreciate that our calls to Congress did not go completely unanswered, but the small relief provided by a less than 2% adjustment of this year’s cut to Medicare physician services hardly classifies as a solution.”
“Even the misinformation about this minor pay cut update being a ‘bonus’ is alarming and illustrates the lack of understanding around the bigger problem that is Medicare’s broken payment system.”
Dr. Bruggeman continued, “Until lawmakers address the underlying issue and implement long-term reforms, our patients in particular—who make up a large percentage of Medicare beneficiaries—will have a harder time accessing timely, quality care. AAOS will continue pressing Congress to protect patients with a permanent fix.”
American Medical Association (AMA) President Jesse M. Ehrenfeld, M.D., MPH expressed disappointment over the pay cuts. In an AMA statement, Dr. Ehrenfeld remarked, “While we appreciate the challenges Congress confronted when drafting the current 2024 appropriations package, we are extremely disappointed that about half of the 2024 Medicare physician payment cuts will be allowed to continue.”
Dr. Ehrenfeld continued, “There were many opportunities and widespread support to block the 3.37 percent Medicare cuts for physician services that took place Jan. 1, but in the end Congress opted to reverse only 1.68 of the 3.37 percentage payment reduction required by the Medicare Fee Schedule. The need to stop the annual cycle of pay cuts and patches and enact permanent Medicare payment reforms could not be more clear.”
For OTW’s previous coverage of AAOS and AMA advocacy regarding proposed pay cuts, see “AAOS And AMA Oppose Proposed CMS Physician Pay Cuts.”
