Medicare's pay for physicians decreased 3.4% in 2024 after dropping 2% in 2023, and while a new spending package offers some relief, physicians say it's not enough.
Here's where the government and physicians stand on the continued Medicare reimbursement reductions:
Even after Congress released a $460 billion spending package to mitigate Medicare's pay cut for physicians, there is still an overall pay cut of 1.7%.
The package would temporarily halve physicians' 3.4% pay cut, which went into effect Jan. 1. Physicians are unhappy the reduction didn't go further, especially after 2023's Medicare physician pay reduction.
In addition, the reduction is only in place for less than 12 months, as the new rate expires Jan. 1, 2025.
Another pay cut in 2024, on top of the lasting impact of COVID-19, inflation, staffing shortages and burnout, will have a profound effect on all physicians and their practices. Caring for Medicare patients and running a practice is becoming unsustainable for physicians, especially for rural and independent physicians, the American Medical Association said on its website March 6.
Congress is expected to propose a second spending package by March 22, which would need to be passed by April 30 in order to dodge a 1% cut to all government agencies.
The AMA is calling for permanent Medicare payment reforms for physicians to be put in place, even urging Congress to treat the situation as an "emergency."