In response to the recent Medicare Trustees Report, AMA President Jesse M. Ehrenfeld, M.D., MPH, expressed concern over the current state of the payment system, stating, “This report continues the drumbeat of recommendations that all point out that the payment system is failing patients and physicians. When physicians face a set of facts, we respond to improve the situation. It would be political malpractice for Congress to sit on its hands and not respond to this report.”
The report highlighted that physician payments within the Medicare program are not keeping pace with the cost of practicing medicine, leading to a potential decline in the quality of healthcare received by Medicare beneficiaries compared to those with private health insurance. The trustees warned that without changes, access to Medicare-participating physicians could become a significant issue in the long term.
Ehrenfeld emphasized the need for action, stating, “The momentum for change is evident. Yet, physicians—battered by the Change cyberattack, Covid, and climbing costs of operating a practice—have yet to see a response equal to the moment.” He also pointed out that Medicare providers have experienced a 29% decline in payments when adjusted for inflation in practice costs from 2001 to 2024.
The Medicare Payment Advisory Commission (MedPAC) has recommended increasing 2025 Medicare physician payments above current law to address these challenges. Additionally, there have been legislative efforts, such as the Strengthening Medicare for Patients and Providers Act (HR 2474), aiming to tie future updates to the Medicare Economic Index (MEI).
Ehrenfeld stressed the importance of addressing these issues promptly, stating, “Medicare trustees and MedPAC have teed up the issue for members of Congress who, no doubt, have heard from constituents about problems accessing health care under Medicare. The AMA has plenty of reform ideas to permanently solve the problem and end this annual cycle of payment cuts and patches.”
