Because Congress did not intervene and stop the 2.8% Medicare Physician Fee Schedule payment cut for 2025, a 2.8% cut took effect on January 1, 2025, marking the fifth consecutive year that Medicare physician payments have been cut. When medical practice inflation is factored in, this is in effect a 6.3% payment cut to physicians.

At a time when physicians are already struggling to keep their doors open and millions of Americans are unable to get timely access to care, these devastating cuts will further push physicians to retire early, reduce the number of Medicare patients they see, or shut their doors entirely – all of which hurts patients. 

Thankfully, a bipartisan bill has been introduced in Congress – HR 879 “The Patient Access and Practice Stabilization Act” – that will prospectively stop the latest round of Medicare payment cuts in full and also provide a partial inflation increase. Specifically, the legislation stops the 2.8% payment cut from January 1 - December 31, 2025, and provides a partial inflation update of 2%, which is a little more than half of the 3.5% estimated medical practice inflation increase for 2025.

"Medicare payments to physicians in California’s 19th Congressional District and around the country have not reflected economic realities and rising costs of health care," said Congressman Jimmy Panetta (D-CA), who introduced HR 879 with Reps Greg Murphy, M.D. (R-NC), Ami Bera, M.D. (D-CA), Raul Ruiz, M.D. (D-CA), Mariannette Miller-Meeks, M.D. (R-IA), John Joyce, M.D. (R-PA), Carol Miller (R-WV), Claudia Tenney (R-NY), Kim Schrier, MD (D-WA), and Raja Krishnamoorthi (D-IL). "The Medicare Patient Access and Practice Stabilization Act would ensure that providers are not penalized by harmful cuts while adjusting reimbursements for inflation. By passing this bipartisan legislation, we will protect seniors' access to quality care and support the providers who make it possible."

Over the past two decades, Medicare payment rates have fallen by 33%, when adjusted for the cost of running a practice, leaving physicians struggling to figure out how they can continue to provide needed care to their elderly and chronically ill patients.

"Having an outdated Medicare reimbursement rate for physicians makes it harder for health care professionals to provide high-quality care, putting patients at risk," said California Rep. Ami Bera, M.D. "Physicians, unlike the rest of the players in health care, have never received an inflationary update and consistently received cuts. This bill ensures a more stable Medicare payment system, allowing providers to focus on delivering care rather than worrying about losing their practice. With this bipartisan effort, we are working toward a system that supports both doctors and patients."

Congressional leaders have directed the appropriations committees to begin work on a March legislative package to keep the government funded past the March 14 deadline. This package would also continue all expiring health programs, including the important pandemic-era telehealth waivers.  The California Medical Association (CMA) and the AMA Federation of medical associations are strongly urging Congressional leadership to adopt the Medicare Patient Access and Practice Stabilization Act as part of the forthcoming legislation to fund the government beyond mid-March.

Physicians are also urged to contact their representatives today and ask them to cosponsor the Medicare Patient Access and Practice Stabilization Act.