What's new with physician pay cuts?

As practice costs rise, many physician leaders are concerned about cuts in CMS reimbursements.

Here are five major updates on physician pay cuts:

1. Congress halved 2024's 3.4% Medicare pay cut for physicians to roughly 1.7% in a $460 billion spending package released in March. The cut comes on top of last year's 2% Medicare physician pay reduction. 

2. Many physicians were disappointed by Congress' move. The American Medical Association said in a blog post that the cut was not enough as the cost of running a practice is becoming unsustainable for many physicians.

3. The original pay cut, released in CMS' 2024 Physician Fee Schedule Final Rule Nov. 2, cut overall physician pay by 1.25% and updated the Medicare conversion factor to $32.74. 

4. Additionally, many physicians are facing more pay cuts from the cost-performance category of the merit-based incentive payment system, which could reduce Medicare payments by up to 9%.

5. The Medicare Payment Advisory Commission released a report to Congress in March recommending a roughly 3% year-over-year pay increase for physicians.

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