The 3.37% reduction in Medicare payments that physicians across the U.S. began facing at the outset of 2024 presents a serious crisis for the profession, according to Dr. Jesse Ehrenfeld, president of the American Medical Association (AMA). “We are working day in and day out, hour by hour with our congressional partners to get that reversed,” he declared during an interview at CES 2024. If not addressed, the cut will have a “dire, drastic impact on seniors’ access to healthcare” across the nation.
Over the past four years, a cumulative 10% reduction in Medicare reimbursement has occurred, a situation deemed unsustainable by Dr. Ehrenfeld. The AMA has thus encouraged both physicians and patients to take part in the Fix Medicare Now campaign, aiming to reach out to Congress and share concerns over the payment cuts prior to the overall government funding vote on 19th January.
Among the measures the AMA supports is the Preserving Seniors’ Access to Physicians Act of 2023, recently introduced in the House of Representatives. This proposed legislation would nullify the 3.37% payment reduction to physicians and it is backed by nearly 200 members of Congress who co-signed a December letter endorsing preventive measures.
If the cut is not reversed, some physicians may either stop treating Medicare patients altogether or cease accepting any new ones. Dr. Ehrenfeld posits that, in light of rising inflation, more and more practices would take such a painful decision unless Congress can keep healthcare workers financially sound. He is however “optimistic” about the reversal of the cuts thanks to bipartisan support, noting that Congress has struggled with passing legislation in the past year.
According to the AMA, physicians are the only group unable to rely on an annual increase based on the Medicare Economic Index to offset increasing business expenses. Yet, if doctors obtained similar adjustments to those of hospitals and other health professionals, 2024 would have brought them a 4.6% boost in payments. Significantly, the Medicare payment decrease could further amplify the already prevalent issue of physician burnout.
As Dr. Ehrenfeld observes, “There are many components that are driving burnout: the system inefficiencies, the burden of prior authorization, administrative requirements, a 3% pay cut. We need to continue to work on that.”