ACP is hopeful that Congress will address physician payment issues in early 2025
Jan. 10, 2025 (ACP) -- Congress swerved at the end of 2024 and left physicians in the lurch by failing to avert a 2.83 percent cut to the Medicare Physician Fee Schedule, but the American College of Physicians is not giving up the fight.
“We've unfortunately found ourselves in a situation similar to Lucy pulling the football away from Charlie Brown in ‘Peanuts,’” said David Pugach, ACP vice president of governmental affairs and public policy. “Still, we are picking up where we left off in December regarding policy needs that we consider to be unfinished business. ACP is urging members of Congress to prioritize these items and to pass a health care package early this year.”
The last-minute setback on Capitol Hill is especially disappointing because Congress came tantalizingly close to reducing the payment cut.
With a government shutdown looming within days, congressional leaders reached a bipartisan budget agreement on Dec. 17. The deal would have stopped all but 0.33 percent of the 2.83 percent physician payment cut, provided a 3.53 percent bonus for Alternative Payment Model participation and extended telehealth coverage policies through 2026.
In addition, the deal would have reauthorized funding for the National Health Service Corps and the Teaching Health Centers Graduate Medical Education program and established new transparency requirements and other reforms for pharmacy benefit managers.
But within a day, President-elect Donald Trump and his advisers announced their opposition. “Their stated reason was that they did not like including legislation unrelated to funding, and Trump said that he wanted Congress to suspend the federal debt limit,” Pugach said. “As a result, support among House Republicans eroded, and House Speaker Mike Johnson opted not to bring the package up for a vote.”
The House and Senate ultimately passed a three-month stopgap budget bill that does not address longer-term health care funding and policies but does temporarily extend telehealth coverage provisions through March 2025. President Joe Biden then signed the legislation.
“All of the issues ACP was fighting for in December still need to be addressed,” Pugach said. “The good news is that we get to try again with the new Congress and the incoming administration.”
Fortunately, there are reasons to be hopeful this time around. “First and foremost, Congress has set a new short-term funding deadline in March, which will likely drive action,” Pugach said. “There is also precedent for Congress to address physician payment issues after the Medicare Physician Fee Schedule year begins. Last March, for example, Congress addressed the 2024 payment cut.”
Pugach stressed that members of Congress, “especially those who were just elected in November, must hear from their constituents about the real-world consequences of inaction and the importance of supporting legislation that protects patient access to care and provides stability to physician practices. ACP's Legislative Action Center provides a quick and easy way for internal medicine physicians to communicate with their members of Congress on these issues. It is vital for physicians to make their voices heard on the importance of legislation that can help them care for their patients.”
Back to the January 10, 2025 issue of ACP Advocate