Here are four key updates to physician pay that leaders need to know:
1. A bipartisan group of lawmakers in the House introduced a bill to reverse the proposed 2.8% Medicare Physician Fee Schedule cut. Rep. Greg Murphy, MD, R-N.C., joined by co-sponsors and hundreds of supporting medical groups, introduced the Medicare Patient Access and Practice Stabilization Act.
"Our bipartisan legislation would not only prevent harmful cuts but also would adjust provider reimbursements for inflation," Rep. Jimmy Pancetta, D-Calif., said in an Oct. 29 news release from Rep. Murphy's office. "Such a law would expand seniors' access to quality healthcare by helping medical providers continue their care for Medicare beneficiaries."
2. The bill comes after a letter signed by 233 House members supporting Medicare cut reversal. The letter urges Congress to "expeditiously pass legislative fixes" to continued cuts to Medicare payments.
"The continued cuts have forced medical groups and integrated systems of care to make difficult choices, such as imposing hiring freezes, delaying system improvements, delaying implementation of care model changes including transitions to value-based care systems, and possibly eliminating services," the letter reads.
3. In July, CMS released its annual proposed changes to the physician fee schedule for 2025, which includes a proposed 93 cent (2.8%) conversion factor decrease from 2024. The proposed physician fee schedule conversion factor for 2025 is $32.36, down from $33.29 in 2024. In November, CMS cut overall physician pay by 1.25% for 2024. The rule updates the Medicare conversion factor to $32.74, a 3.4% decrease from 2023. Additionally, some physicians could face more cuts due to the cost-performance category of the merit-based incentive payment system, which could potentially reduce Medicare payments by up to 9%.
4. CMS' Medicare Merit-based Incentive Payment system has new reporting options to fulfill traditional MIPS requirements. Physicians now have two options for MIPS reporting: MIPS Value Pathways and the Alternative Payment Model Performance Pathway.