Today, California Representatives Jimmy Panetta, (D-CA-19), Ami Bera, M.D. (D-CA-6), Raul Ruiz, M.D. (D-CA-25) and their bipartisan counterparts Greg Murphy, M.D. (R-NC), Mariannette Miller-Meeks, M.D. (R-IA), Larry Bucshon, M.D. (R-IN), Kim Schrier, M.D. (D-WA) and John Joyce (R-PA) introduced H.R. 10073, the Medicare Patient Access and Practice Stabilization Act of 2024, to stabilize physician practices and improve patient access to care.

Supported by the California Medical Association (CMA), the bill would stop an impending 2.8% Medicare payment for physicians and provide a partial inflation update – 50% of the Medicare Economic Index (MEI) for one year – resulting in a total payment increase of 4.73% in 2025.

“CMA physicians thank California Congressmembers Panetta, Dr. Bera and Dr. Ruiz for many years of trying to stop payment cuts to physicians serving Medicare patients. We applaud their ongoing advocacy on this issue and their emphasis on updating payments to reflect rising inflationary costs,” said CMA President Dr. Shannon Udovic-Constant. “Year after year, these cuts threaten patient care and further strain an already stretched physician workforce. It is crucial that we stop undermining health care coverage and instead invest in ensuring seniors have access to health care.”

While hospitals and skilled nursing facilities receive annual inflation adjustments to their Medicare payments, physicians do not. As a result, Medicare physician payments have declined 29% since 2001.

Both the Medicare trustees and the Medicare Payment Advisory Commission have warned that Medicare’s inadequate reimbursement rates could lead to access to care challenges, and physicians have echoed these concerns. A 2022 CMA survey of California physicians found that chronically low Medicare reimbursement rates are causing 45% of respondents to consider early retirement and 70% of respondents said Medicare is forcing them to either limit their Medicare patient loads or stop taking new Medicare patients altogether. 

The failure of Medicare payments to cover the cost of care is exacerbating physician shortages and driving up consolidation in health care, which has sharply driven up Medicare costs. Physicians want to care for their communities, but without appropriate payment to keep pace with California’s higher costs, it is more difficult to maintain a viable medical practice open to all Medicare patients. 

CMA urges the California Congressional delegation to co-sponsor this vital legislation and calls for Congress to act swiftly in December to stem the tide of physician shortages and patient delays in accessing care. Recently, 233 Members of Congress sent a bipartisan letter to House leadership urging them to pass legislation during the Lame Duck Session to stop the Medicare cut, provide an inflation update, and protect seniors. The Medicare Patient Access and Practice Stabilization Act of 2024 provides an important bridge to stabilize practices and protect patients while CMA works with Congress to enact longer term reforms next year.