A new short-term federal funding bill has locked in a fifth consecutive year of Medicare physician payment cuts, with 2026 rates proposing a 2.8% reduction despite rising practice costs. Meanwhile, Medicare Advantage plans will see a 4.33% increase in payments. AMA President Dr. Bruce Scott warns this growing disparity threatens the sustainability of physician practices and patient access to care. He emphasizes the urgent need for Medicare payment reform, including annual payment updates tied to practice costs, budget neutrality reforms, improved MIPS, and enhanced alternative payment models.
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