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October 30, 2024

Legislation Introduced to Address Cuts in Medicare Physician Fee Schedule

  • Government Relations News

On October 29, Congressman Gregory Murphy (R-NC), along with Representatives Jimmy Panetta (D-CA), Mariannette Miller-Meeks (R-IA), Ami Bera (D-CA), Larry Buchson (R-IN), Raul Ruiz (D-CA), John Joyce (R-PA), and Kim Shrier (D-WA), introduced the Medicare Patient Access and Practice Stabilization Act of 2024. This legislation seeks to halt the steady decline in Medicare reimbursement since 2001. The proposed rule for the Medicare Physician Fee Schedule (MPFS) for calendar year 2025 included a 2.8 percent decrease that is further magnified by increasing practice costs. The legislation would eliminate the 2.8 percent conversion factor cut for 2025 and make an additional update based on the Medicare Economic Index (MEI).

The bill’s introduction follows the letter earlier this month to House leadership signed by more than 200 bipartisan House members requesting action to fix the unsustainable Medicare cuts to healthcare providers. The letter emphasized the need to stop the cuts and implement a permanent MEI update to offset increasing costs, particularly for independent clinical practices. The 2.8 percent reduction represents the fifth consecutive year of lower payments proposed by the Centers for Medicare and Medicaid Services), but Congress has stepped in before to mitigate these cuts for the short-term. The current legislation does not establish a permanent solution to the MPFS but does offer some relief for 2025.

This bill has been widely endorsed by the American Medical Association, physician organizations, allied health organizations, consumer groups, and others. More than 100 different organizations, including the Academy, are listed as supporting the Medicare Patient Access and Practice Stabilization Act of 2024.. The Academy supports the bill in recognition that the continued cuts in the MPFS harm audiologists and hopes the bill will lead to Congressional efforts to resolve a permanent fix that will support audiology–and other health care–services.

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