Joint Medicare Federation Letter

Dear Speaker Johnson, Majority Leader Schumer, Minority Leader McConnell, and Minority Leader Jeffries:

The undersigned national medical societies and state medical associations write to urgently request that Congress pass legislation to both prevent the scheduled 2.83 percent Medicare physician payment cut and, critically, provide a positive payment update for 2025. Absent Congressional intervention, this most recent cut, which was finalized in the November 1st Medicare Physician Fee Schedule (MPFS) Final Rule, marks the fifth consecutive year of reductions in Medicare physician payments. Without federal legislation that provides a payment increase reflecting rising inflationary pressures, patient access will suffer and the sustainability of physician practices across the country, particularly in rural and underserved communities, will be threatened.

The recently finalized MPFS rule underscores the severity of this issue: while the Medicare Economic Index (MEI)—the measure for physician practice cost inflation—will increase by 3.5 percent, physicians will not receive an update reflective of inflation. Conversely, Medicare payments to physicians actually declined by 29% over the last two decades, when adjusted for inflation in practice costs. Without Congressional intervention, this imbalance will deepen the gap between rising practice costs and Medicare reimbursement, straining the ability of practices to remain viable and serve their Medicare patients.

In October, 233 of your colleagues from both parties signed a Dear Colleague letter led by Representatives Mariannette Miller-Meeks, MD¹ (R-IA) and Jimmy Panetta (D-CA)² urging expeditious Congressional action to address these concerns. The letter emphasized the urgent need to stop the approximately 2.83 percent payment cut, reform budget neutrality requirements, and provide a payment increase that accounts for inflationary pressures in 2025. The strong, bipartisan support generated by the October letter reflects a shared commitment within Congress to safeguard Medicare and ensure seniors retain access to care.

Thankfully, a strong collection of bipartisan lawmakers has introduced a legislative solution to this time-sensitive Medicare payment problem. The undersigned organizations strongly support H.R. 10073, the Medicare Patient Access and Practice Stabilization Act of 2024³. This bipartisan bill would replace the 2.83 percent cut with a 1.8 percent payment update, which is equivalent to half of the MEI increase forecasted for 2025. This update is the same amount recommended by the Medicare Payment Advisory Commission (MedPAC) to avoid problems with patient access to care in the Medicare program forecasted under the current payment system. By securing a positive update that aligns with a portion of rising practice expenses, Congress can provide essential stability for physicians in 2025 allowing time for comprehensive reform to the Medicare physician payment system to begin in earnest in the 119th Congress.

We urge Congress to pass H.R. 10073 before the conclusion of the 118th Congress. This legislation will serve as a bridge to broader reform while averting an impending cut that threatens both practice solvency and patient access to care. As always, our organizations are ready to work alongside Congress to achieve lasting reforms that ensure a stable and equitable Medicare payment system.

Sincerely,

¹ https://millermeeks.house.gov/media/press-releases/miller-meeks-leads-232-house-members-address-doc-cuts2025
² https://panetta.house.gov/media/press-releases/rep-panetta-leads-232-house-members-urging-action-address-doccuts-2025
³ https://murphy.house.gov/media/press-releases/murphy-introduces-bipartisan-legislation-protect-medicarephysicians-and