Physicians 'outraged' that spending bill fails to avert pay cut

Photo: Helen King/Getty Images

Physicians are again shortchanged in a spending bill proposal to avert a government shutdown by the end of this week.

The continuing resolution that passed the House on Tuesday, and which now moves on to the Senate, contains no provision to stop the 2.8% Medicare physician pay cut that went into effect on Jan. 1.

"Physicians across the country are outraged that Congress's proposed spending package locks in a devastating fifth consecutive year of Medicare cuts, threatening access to care for 66 million Medicare patients," said AMA President Dr. Bruce A. Scott by statement. "Despite repeated warnings, lawmakers are once again ignoring the dire consequences of these cuts and their impact both on patients and the private practices struggling to keep their doors open."

WHY THIS MATTERS

Physicians are leaving their practices, Scott said.

"Two of my partners have given up," Scott said last month. "And as of Jan. 1, they're leaving private practice, and they're going to become employed. Not because they want to leave private practice – but because of the challenges that we're talking about."

In a statement issued Sunday, Scott said the "decision to allow the 2.8% cut to go forward is particularly devastating for rural and underserved communities."

After adjusting for the inflation in practice costs, Medicare payment to physician practices has dropped 33% since 2001, he said.

"Let me be clear: These unsustainable cuts will force more practices to close and leave patients with fewer options for care. ... Medicare patients will pay the price," Scott said. 

THE LARGER TREND

In December 2024, then-President Joe Biden signed a spending bill to avert  a government shutdown, but some healthcare provisions that were in an original bill didn't make it to final passage after Congress drafted a last-minute plan.

Stripped out of the pared-down bill was a provision to prevent the 2.8% Medicare pay cut to physicians. 

Both acute hospital-care-at-home and telehealth temporary waivers were continued until March 31, when the government spending legislation expires. The CR allows telehealth provisions to continue for another six months.

This is the fifth consecutive year of Medicare pay cuts for physicians. The pay cut comes on top of the Centers for Medicare and Medicaid Services projecting a 3.5% rise in the Medicare Economic Index, which measures the cost of running a medical practice.

A Medicare Patient Access and Practice Stabilization Act of 2025 introduced in January in the House would have stopped the payment cut, but it's gone no further than being introduced.

Email the writer: SMorse@himss.org