President Biden Signs Legislation that Partially Offsets the 3.37% Medicare Physician Fee Schedule Cut
On March 9, 2024, President Biden signed into law H.R. 4366, known as the “Consolidated Appropriations Act, 2024,” to avert a partial government shutdown. The $460 billion spending package includes a 1.68% reduction to the 3.37% cut to the Medicare Physician Fee Schedule (MPFS) conversion factor that took effect January 1, 2024. The legislation is effective as of March 9, 2024, and is not retroactive to January 1, 2024.
The Heart Rhythm Society strongly advocated for Congress to eliminate the full 3.37% fee schedule cut. While a partial decrease in the cut is appreciated, the Society will continue to advocate for a more sustainable Medicare payment system that includes an annual inflation update and addresses budget neutrality.
Other health care provisions addressed in the legislation include:
- An extension of the work Geographic Practice Cost Index (GPCI) floor through December 31, 2024.
- An extension of Alternative Payment Model bonus payments at 1.88% for performance year 2024.
- An extension of funding for teaching health center Graduate Medical Education programs through December 31, 2024.
- $4.27 billion to support community health centers.
- Elimination of cuts to Disproportionate Share Hospitals.
- Reauthorization of substance use disorder treatment programs enacted under the SUPPORT Act, as well as other behavioral health provisions.
The Centers for Medicare & Medicaid Services is expected to update the MPFS soon to reflect the new conversion factor for calendar year 2024.