AMA-backed bill seeks to stop 2.83% Medicare payment cut (TechTarget)

A bipartisan push to reverse the 2.83% Medicare payment cut that took effect on January 1, 2025, is gaining momentum, with 10 House members introducing new legislation aimed at stabilizing physician reimbursements.

The Medicare Patient Access and Practice Stabilization Act proposes to roll back the payment cuts and implement a 2% increase in physician reimbursements under the Medicare Physician Fee Schedule. If passed, the bill would take effect on April 1, 2025—but will Congress act in time?

Physician groups, including the American Medical Association (AMA) and the Medical Group Management Association (MGMA), warn that ongoing Medicare cuts, coupled with rising practice costs and inflation, are creating an unsustainable crisis. According to AMA data, Medicare payments have dropped 33% since 2001 (adjusted for inflation), while practice expenses have soared 59%.