A bipartisan group of lawmakers has introduced the Provider Reimbursement Stability Act, legislation aimed at modernizing the Medicare Physician Fee Schedule to address decades of declining physician reimbursement, according to a March 31 news release.
The bill was introduced by Rep. Greg Murphy, MD, R-N.C., who brought a similar measure in the prior Congress without success. It comes as most physicians faced a 2.9% pay cut in 2025 and are scheduled for a 2.2% decline in 2027, according to the American Medical Association. Physician groups say these cuts lag rising practice costs and contribute to retirements and consolidation.
The legislation would raise the budget neutrality threshold from $20 million to $54.3 million, index it to inflation every five years, limit year-to-year variance in the conversion factor to 2.5% and require updates to practice expense calculations at least every five years. According to the AMA, Medicare reimbursement for physician services has declined 33% from 2001 to 2026 when adjusted for inflation, with some fee schedule provisions unchanged since 1992.
The bill has been referred to committee and is co-sponsored by Reps. Tom Suozzi, D-N.Y., Brad Schneider, D-Ill., John Joyce, MD, R-Pa., Mariannette Miller-Meeks, MD, R-Iowa, Bob Onder, MD, R-Mo., Jimmy Panetta, D-Calif., Kim Schrier, MD, D-Wash., and Robin Kelly, D-Ill.
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