Dive Brief:
Doctors criticized a funding bill released by House Republicans over the weekend that would approve a 2.8% cut to the Medicare payment rate for physicians.
The continuing resolution, which will need to be approved by the House and Senate, left in place a payment cut from Jan. 1, despite lobbyists’ hopes lawmakers would reverse it.
In a statement on Sunday, Bruce Scott, president of the American Medical Association, decried the spending bill. “The window to reverse this reckless decision is rapidly closing,” Scott said. “Lawmakers must explain either why protecting access to quality health care is not a priority or how they plan to fix it.”
Dive Insight:
Congress is hurtling toward a March 14 deadline when they must approve a spending package or face a government shutdown.
The spending package is also an opportunity to extend or preserve critical healthcare programs, including Medicare reimbursements.
Just weeks ago, bipartisan House lawmakers introduced a bill that would stop the 2.83% cut for physician practices and provide a 2% payment update to help offset rising costs associated with running practices.
However, lawmakers have since reversed course.
This weekend, Politico reported Medicare funding was axed from the proposal due to concerns that lawmakers could make additional spending demands. Republicans’ backpedaling on Medicare came as a shock to doctors groups who have been lobbying lawmakers to protect Medicare funding in the spending bill.
In a statement, Anders Gilberg, SVP of government affairs for the Medical Group Managament Association, said Congress should go back to the drawing board to include provisions that prevent provider cuts from being implemented.
“Failure to do so would mean another year of unkept promises to physicians, signaling little regard for medical practices or our nation’s seniors,” said Gilberg.
Doctors have argued for years that the cost of providing services outpaces reimbursement from the government. Practice costs have risen 3.5% this year, while Medicare payment rates to physician practices have dropped 33% since 2001, adjusting for inflation, according to the AMA.
This year marks the fifth year of consecutive cuts to Medicare funding.
Doctors groups say the cuts could impact rural communities that already struggle with issues of healthcare access. In 2023, the National Association of Community Health Centers found 100 million Americans lack access to primary care, with the number of people without access due to an inadequate supply of providers nearly doubling since 2014.
Some lawmakers may push back on the spending bill without the funds for providers. Rep. Greg Murphy, R-N.C., a physician and a practicing surgeon, previously told The Hill he would fight spending bills that don’t hike Medicare payment rates for physicians.
The proposed cuts to Medicare funding for physicians come as lawmakers also seem set to slash funding for Medicaid. The Congressional Budget Office sent a letter to lawmakers last week stating Congress will not be able to reach its budget target without making cuts to the program.
