Congress Extends Government Funding, Close to Including 2024 Medicare Payment Provision that Continues to Cut Physicians’ Pay
On February 29th, Congress passed the fourth interim spending measure of fiscal year 2024, averting the threat of a partial government shutdown ahead of the first government funding deadline on March 1st.
The latest two-step continuing resolution extends appropriations for some federal departments through March 8th, and others through March 22nd. The bill passed the House of Representatives in a 320-99 vote and was approved by the Senate in a 77-13 vote. President Biden signed the legislation into law on Friday February 29.
Lawmakers have negotiated an appropriations deal that includes funding through September 30th, the end of the fiscal year. The Consolidated Appropriations Act, 2024 accounts for approximately 27% of federal funding. HRS is extremely disappointed that the package leaves in place the full Medicare physician cut of 3.37% from January 1st to March 8th, and then, from March 9th through December 31, 2024, subjects physicians to a cut of 1.77%. Annualized, these cuts would result in physicians receiving over 2% less in Medicare reimbursements in 2024 relative to 2023. These reductions will be in addition to the 2% federal sequestration cuts currently in place and costs associated with inflation.
Leadership hopes to finalize and pass the agreement this week, ahead of the March 8th deadline. Congress has until March 22nd to fund the remaining parts of the federal government, including the U.S. Department of Health and Human Services. HRS will work with others in the physician community to emphasize the unacceptability of these cuts and underscore the need for long term reform of the methodology to update Medicare physician payments, including to press for a provision that will incorporate an inflationary update factor into the Medicare Physician Fee Schedule annual payment update.