On Nov. 1, CMS finalized a 2.83% physician pay cut in its 2025 Medicare Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Payment System. The physician fee schedule conversion factor for 2025 is $32.35, down from $33.29 in 2024.
The bipartisan letter, led by Sens. John Boozman (R-Ark.) and Peter Welch (D-Vt.), says that the cuts could hinder physicians’ ability to provide care.
“Persistent instability in the healthcare sector — due, in part, to consistent payment cuts — impacts the ability of physicians and clinicians to provide the highest quality of care,” the letter reads. “These continued payment cuts undermine the ability of independent clinical practices — especially in rural and underserved areas — to care for their communities.”
The move follows a trend of declining physician pay. CMS cut overall physician pay by 1.25% for 2024, and, overall, physician reimbursement amounts per Medicare patient decreased around 2.3% between 2005 and 2021 when accounting for inflation, according to a new study from the Harvey L. Neiman Health Policy Institute.
With few days left to legislate, physicians have asked lawmakers to make this a priority during the lame-duck session.
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