HRS Urges Congress to Refine the Medicare Physician Fee Schedule

August 8, 2024 – On July 24th, HRS, along with more than 100 national and state medical societies, signed on to a joint comment letter spearheaded by the American Medical Association calling for Congress to pass new legislation to refine the Medicare Physician Fee Schedule (MPFS) to accurately reflect the financial and clinical realities of medical practice today.

The letter describes the following four key areas of reform:

1. Enacting an annual, permanent inflationary payment update in Medicare that is tied to the Medicare Economic Index (MEI);
2. Budget Neutrality reforms;
3. An overhaul of MACRA’s Merit-based Incentive Payment System (MIPS); and
4. Modifications to Alternative Payment Models (APM)

The MPFS proposed rule for CY2025 estimates a 2.8% across-the-board cut to the conversion factor for physician payment rates, compounded by sequestration and other Medicare program payment penalties. The letter reaffirms support for H.R. 6371, the “Provider Reimbursement Stability Act,” that would mandate CMS to adjust budget neutrality requirements for the conversion factor, and pass H.R. 2474, the “Strengthening Medicare for Patients and Providers Act,” bipartisan legislation that would provide an annual physician payment update in Medicare tied to the MEI.

Available Resources

• Comment Letter: Urging Congress to Refine the Medicare Physician Fee Schedule (July 24, 2024)