In the face of an increasingly unsustainable Medicare physician payment system, hundreds of state and national medical associations collectively exhorted congressional leaders to adopt a four-point reform plan they say can “no longer be delayed without severe repercussions for patient access and quality of care.”
The move follows Medicare’s proposal in July of yet another successive cut at 2.8%, as well as the Medicare Payment Advisory Commission’s warning in a June 2024 report to Congress that ongoing cuts could harm access to care as physicians are forced to “reduce the number of Medicare beneficiaries they treat or stop participating in Medicare entirely,” and as the widening gap between physician and hospital payments “spur(s) additional vertical consolidation in the health care industry.”
The Texas Medical Association participated in a work group that helped develop medicine’s policy plan with the American Medical Association and others, the pillar of which is prioritization of an annual, permanent inflationary payment update tied to the Medicare Economic Index via passage of House Resolution 2474.
“This reform would stabilize physician payments, allowing for long-term planning, investment in practices, and the delivery of high-quality, patient-centered care,” medicine wrote to House and Senate leaders. “Physician practices, many of which are small businesses, face rising costs for office rent, clinical and administrative staff wages, and professional liability insurance. The unfortunate reality is that these costs are not adequately reflected in current Medicare payment rates. Hospitals and other providers receive annual updates tied to inflation; it is critical that physician payments receive a similar adjustment.”
Organized medicine’s recommendations also impress upon the House and Senate to enact three complementary policies that include:
- Budget neutrality reforms, such as those included in House Resolution 6371. The bill would implement measures to provide more accurate estimates of physician payments and update federal budget constraints accordingly;
- An overhaul of the Merit-Based Incentive Payment System to remove undue administrative and uneven financial burdens on practices; and
- Modifications to alternative payment models (APMs), such as those put forth in companion measures Senate Bill 3503/House Resolution 5013. The Value in Health Care Act would extend the original 5% APM incentive payments and freeze the 50% revenue threshold for an additional two years.
In a recent legislative call to action, TMA President G. Ray Callas, MD, reiterated the admonition that “decades of Medicare pay cuts are negatively impacting physician practice viability. This diminishes access to care for all patients. We must ensure our seniors are cared for with the highest standard of care. We must develop a permanent, viable Medicare physician payment system.”
Dr. Callas implores Texas physicians to respond to this call to action by contacting their U.S. representative and senators and urging them to stop the latest proposed 2.8% pay cut and enact comprehensive reform.
“Washington doesn’t think another cut matters, but we know otherwise. Please tell your story,” he said.
Last Updated On
August 13, 2024
Originally Published On
August 13, 2024
Amy Lynn Sorrel
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