CMS proposes lower Medicare fee schedule for 2025

This is unsustainable. Patients’ access to care is in jeopardy unless Congress acts promptly. A 2.8% cut from CMS as practice cost inflation is up 3.6%! Adjusted for inflation in practice costs, Medicare physician payment declined 29% from 2001 to 2024. Even MedPAC and the Medicare Trustees warn these repeated cuts to Medicare physician payment. threaten access to care.

This is a scary thought when considering future economic impacts.

According to research from the American Medical Association (AMA), Medicare physician payments have effectively declined 29% from 2001 to 2024, while operating costs have increased. The 2025 Medicare Physician Fee Schedule proposed earlier this month would decrease Medicare fee-for-service payments by another 2.8%. However, the proposal also includes several measures to improve care coordination, expand patient access to important primary care services, and advance value-based care programs. Faced with the prospect of lower Medicare fee-for-service reimbursements in 2025, many primary care physicians and groups are under pressure to evaluate the value-based care models most likely to help their organizations increase revenue next year and the ACOs best positioned to set them up for long-term success. Read our latest blog to learn more about opportunities to stabilize and grow revenue for your organization as the movement from volume to value accelerates. #primarycare #medicare #valuebasedhealthcare #valuebasedcare #healthcareindustry #healthcareinnovation #healthcareleaders #acoreach 

CMS is proposing a 2.83% cut to the conversion factor for 2025, which reduces physician reimbursement for services provided to Medicare patients. With physician practice overhead costs continuing to rise, this is not a model for operational success. Where are other areas you think CMS could save money rather than reducing payments to physicians? https://lnkd.in/gcrwfTp2

Recent updates to the Medicare Physician Fee Schedule (MPFS) have sparked significant concerns among healthcare providers. The proposed changes, aimed at furthering value-based care, suggest adjustments to payment rates and introduce new complexities in billing and coding. Providers worry these adjustments could impact their financial stability and ability to deliver quality care. While the shift towards value-based care is essential for improving patient outcomes and reducing costs, it's crucial that these changes do not inadvertently burden providers. The feedback from the healthcare community underscores the need for balanced reforms that support both patients and providers. It’s a delicate balancing act between cost containment and maintaining high standards of care. As we navigate these regulatory changes, it's important for all stakeholders to leverage data-driven decision-making. Utilizing robust data analytics can help predict financial impacts, optimize care delivery, and ensure compliance with new regulations.

The impending 2.8% Medicare Physician Fee Schedule (PFS) cuts are scheduled to go into effect on January 1, 2025. This could have a huge impact on providers across the board, especially in the emergency medicine space. Check out the bill below that might help stop this cut and provide an inflation update. #acep #edbilling #emergencymedicine #er #rcmservices

🕰️ Throwback: Navigating Medicare's Historical Waves! Join us on another exploration of key milestones that have shaped the seas of Medicare. 🌊 1990 - Medicare Catastrophic Coverage Revisited: Responding to the needs of seniors, Congress revisited catastrophic coverage in 1990, showcasing the importance of iterative improvements in healthcare policy based on the real experiences of beneficiaries. 2005 - Medicare Part D: A Decade In: As Medicare Part D celebrated its first decade, the program continued to evolve, adapting to the changing landscape of pharmaceuticals and ensuring seniors had access to a wide range of medications at affordable costs. 2013 - Medicare Physician Payment Reform: The Medicare Access and CHIP Reauthorization Act

CMS finalizes 2.83% physician payment cut for 2025 CMS released its 2025 physician payment rule, which includes a 94 cent (2.83%) conversion factor decrease from 2024. The physician fee schedule conversion factor for 2025 is $32.35, down from $33.29 in 2024, according to a Nov. 1 CMS news release. Only time will tell if more providers will continue the trend of limiting their patient panel and access for Medicare beneficiaries. Even worse is the trend of so goes Medicare so goes commercial payers in reducing reimbursement to physicians. Both the AMA and the MGMA organizations are calling on Congress to pass a recently introduced House bill that would stop the cuts that are scheduled to go into effect Jan. 1. Rep. Jimmy Panetta of California said the legislation would not only prevent cuts, but would adjust provider reimbursements for inflation. What other profession would accept continued annual Medicare payment cuts year after year? Hopefully, the payment formula used to determine and calculate annual reimbursement updates will be addressed soon instead of throwing physicians a bone and providing a 1% increase or even worse, no annual reimbursement increase. #reimbursementcuts, #paymentdecrease, #workingforlessreimbursement, #stopmedicarepaymentcuts https://lnkd.in/eHJVFsuk

Healthcare providers have experienced a cumulative 8% cut in Medicare reimbursement over the past four years. In 2025, they face an additional 2.8% cut. The impact to patient care is growing, as revealed in a recent AMGA survey of its members. More systems and medical groups are anticipating taking drastic measures such as eliminating patient services and implementing hiring freezes.   Learn more about AMGA's Stop the Cuts campaign: amga.org/stopthecuts

The failings of Medicare cannot be solved on the backs of physicians. Physician payments have been the sacrificial lamb to help mitigate the financial shortfalls of Medicare. This is not sustainable and we need innovations like alternative payment models to promote preventative care and reward high-quality cost-effective care. Hospital systems have also disproportionately benefited relative to physicians given more effective advocacy. Physicians must be united and advocate for ourselves to prevent further physician payment cuts. Please join DHPA in our efforts as we try to reform the physician payment system.