Doctors' groups are lining up to support new federal legislation to permanently tie Medicare physician payment updates to inflation.
Doctors' groups are lining up to support new federal legislation to permanently tie Medicare physician payment updates to inflation.fee schedule updates to the Medicare Economic Index, a measure of inflation related to physicians' practice costs and wages.
That's a long-sought goal of the American Medical Association, which is leading 120 state medical societies and medical specialty groups in championing the bill. The legislation is essential to enabling physician practices to better absorb payment distributions triggered by budget neutrality rules, performance adjustments, and periods of high inflation, the groupssent this week to the bill's sponsors. The sponsors say they hope the legislation will improve access to care, as low reimbursements cause some physicians to limit their number of Medicare patients.
Physicians groups for years have urged federal lawmakers to scrap short-term fixes staving off Medicare pay cuts in favor of permanent reforms. Unlike nearly all other Medicare clinicians including hospitals, physicians' Medicare payment updates aren't currently tied to inflation., including a 2% payment reduction in 2023, according to the AMA.
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