The broken Medicare payment system that continues to create financial hardships for physicians jeopardizes access to care for patients and threatens the long-term viability of independent practice. The time for Congress to act is NOW!
Given this urgency, it was encouraging to see close to 400 of our physician colleagues, representing nearly every state and specialty, brave the snow and wind in Washington, D.C., on Feb. 11 to pack an historic caucus room inside the sprawling U.S. Capitol complex and make our case for Medicare payment reform.
The Fix Medicare Now rally was part of this year’s AMA National Advocacy Conference, a three-day gathering in the shadow of U.S. Capitol centered on the AMA’s multiyear push for Medicare reform as well as our other federal advocacy priorities for the year ahead.
There we stood inside the ornate room on Capitol Hill, shoulder to shoulder, wearing our white coats, listening to eight members of the new Congress from both sides of the aisle—seven of whom were also physicians—speak in support of the AMA’s efforts to reform this unsustainable model that has subjected physicians to annual payment cuts for the better part of two decades. I came away optimistic that true bipartisan momentum is building toward real reform that will relieve at least some of the enormous financial pressure that physicians have had to endure for far too long.
One reason for optimism can be found in the introduction of H.R. 879, the Medicare Patient Access and Practice Stabilization Act of 2025. This legislation would reverse the 2.83% Medicare payment cut physicians suffered at the start of this year—the fifth straight year of payment reductions—and provide an additional 2% positive payment increase that would take effect April 1. Our enthusiasm is tied to the fact that finally achieving our goal of reforming the broken and unsustainable Medicare payment system is within reach, based on growing bipartisan support for this legislation in the new session of Congress.
Medicare physician reimbursement has plummeted by an inflation-adjusted 33% since 2001 (PDF) in the face of ever-rising practice costs, making our situation even more dire while driving the need for payment reform to new heights. Working alongside our partners in the Federation of Medicine, the AMA is committed to payment reform that will offset those higher practice costs. H.R. 879 puts us on the path to this reform.
The AMA is working tirelessly with the medical societies in all 50 states as well as dozens of medical specialty organizations to make it happen, as outlined in our Feb. 10 letter (PDF) to congressional leaders.
The bipartisan group of 10 House members co-sponsoring this bill includes Rep. Greg Murphy, MD, a Republican from North Carolina, and Rep. Jimmy Panetta, a Democrat from California. They and their colleagues recognize the dire need to ensure that Medicare reimbursement policies reflect the true costs of providing care, and the need for action now to enable all those enrolled in Medicare to receive the care they need and deserve.
Reform need transcends politics
Physicians are the foundation of our nation’s health care system, and I am encouraged that a growing number of both Republicans and Democrats in Congress recognize the flaws in our current payment system and are committed to eliminating them. Our allies in Congress, including the members who spoke in favor of H.R. 879 during the National Advocacy Conference, clearly understand that the need for Medicare payment reform—and the need to put our nation’s health care system on a stable and sustainable path—transcends political differences.
Strengthening physician practices in every type of setting strengthens our health care system. When physicians thrive, our health system thrives. But the ongoing lack of Medicare payment reform drives physician burnout and triggers a host of other negative consequences as well. Some physicians are forced to stop accepting Medicare patients, while others cut back their hours or close their practices entirely. And of course it is our patients who suffer, with elderly and disabled persons at the greatest risk.
Want the latest viewpoints from AMA leadership?
Annual updates are critically important
Magnifying the problem is the fact that most private payers, well aware of the annual downward spiral of Medicare reimbursement, tie their physician payments to the Medicare rate. Likewise, Medicaid payment in most states is also linked to Medicare rates.
Ensuring that physicians can maintain their practices through an inflation-based annual update is critical to ensuring that patients maintain access to Medicare going forward. Taking that long-overdue action merely brings physicians into alignment with the rational and automatic yearly inflationary payment increases already granted to hospitals, skilled nursing facilities and others who serve Medicare patients.
The AMA is not alone in sounding the alarm. Both the Medicare Physician Payment Advisory Commission and the Medicare Trustees have warned that repeated Medicare payment cuts jeopardize access to care. All patients are put at risk when a flawed and outdated payment system forces physicians to cut hours or close their doors.
I urge you to add your voice—today—by urging your representatives in Congress to include H.R. 879 in the next spending package due in mid-March. You will find additional resources to help guide your advocacy efforts here.
Working together, we can and will make Medicare payment reform a reality. The need is clear, and the time is NOW!
