AMA urges action on Medicare payment reform at House hearing

WASHINGTON - The American Medical Association (AMA) is reiterating calls for Congress to pass bipartisan legislation to stabilize Medicare physician payment and preserve affordable, community-based care. Today's House Energy and Commerce Subcommittee on Health hearing on the Medicare Physician Fee Schedule and Medicare Access and CHIP Reauthorization Act (MACRA) highlights the urgent need for Medicare payment reform as physician practices across the country struggle to keep up with rising costs.

Medicare physician payment has declined 33 percent (PDF) since 2001 when adjusted for inflation, and physicians remain the only Medicare provider without an automatic annual inflationary payment update. Many physician practices, particularly in rural areas, are being forced to limit the number of Medicare patients they see or close altogether.

"Medicare's physician payment system is failing both physicians and patients," said AMA President Bobby Mukkamala, MD. "Without reform, more practices will close, and patients will face longer wait times, higher costs, and fewer options for care close to home. We thank House Energy and Commerce Committee Chairman Brett Guthrie and Subcommittee on Health Chairman Morgan Griffith for their leadership in addressing the challenges facing physician practices and Medicare patients."

The AMA is urging Congress to advance bipartisan reforms that would stabilize physician payment, including establishing a permanent inflationary update tied to the Medicare Economic Index (MEI). The AMA strongly supports the Strengthening Medicare for Patients and Providers Act and the Provider Reimbursement Stability Act. The AMA also supports the recently introduced Medicare Physician Data-Driven Performance Payment System Act, aimed at modernizing the Merit-based Incentive Payment System (MIPS) and reducing administrative burdens on physician practices.

The AMA's full statement for the record submitted to the House Energy and Commerce Subcommittee on Health is available here (PDF).