Jordan Johnson, Founding Partner of Bridge Oncology and serves on the Board of Directors for the National Association of Medication Access and Patient Advocacy, shared a post on LinkedIn:
“MedPAC Eyes Changes to Medicare Physician Payment Updates.
The Medicare Payment Advisory Commission (MedPAC) is considering a major revamp of how Medicare updates physician payment rates each year. With rising medical inflation and a 2.83% payment cut in 2024, commissioners are questioning whether current updates are sufficient.
What’s on the Table?
- Tying updates to the Medicare Economic Index (MEI) – Instead of the current system, MedPAC is exploring an annual increase based on MEI minus 1% to better reflect physicians’ rising costs.
- Improving payment accuracy – MedPAC wants HHS to regularly update cost data and refine how payment rates reflect real-world practice settings.
Next Steps: MedPAC will vote in April, and any recommendations could be included in its June report to Congress. While MedPAC’s recommendations are nonbinding, they influence congressional decision-making.
AMA President Bruce Scott supports the proposal, calling it a necessary step to protect physician practices and patient access to care.
Why This Matters: Unlike hospitals and other providers, physicians don’t get automatic annual Medicare payment increases. As costs rise, sustainable reimbursement is critical to ensuring Medicare beneficiaries can continue accessing care.”