Consequences of cutting Medicare physician reimbursement

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Key Takeaways

Medical groups face a 2.8% Medicare Physician Fee Schedule cut in 2025, following a 4-year trend of reductions.
AMGA's survey indicates significant impacts on patient services due to cumulative Medicare reimbursement cuts.
AMGA urges Congress to stabilize Medicare payments to ensure continued patient access to quality care.
Healthcare organizations are planning actions to mitigate the financial impact of the 2025 cuts, with some already implemented in 2024.

AMGA posts survey results forecasting effects on patient services if reduction happens in 2025.

Medical groups will be forced to take actions that make up for a 2.8% cut to the Medicare Physician Fee Schedule planned starting in January 2025.

American Medical Group Association (AMGA) in July and August polled member organizations representing 64,271 physicians and other clinicians about how they would respond to the cut proposed for 2025. AMGA also asked about what actions the groups took this year to account for the 2024 cut.

“Congress must ensure a stable Medicare program that does not continue to cut payments to providers every year,” AMGA President and CEO Jerry Penso, MD, MBA said in a news release. “Over the past four years, we have faced up to 8% cuts in Medicare reimbursement, and this year we again face another reduction of 2.8%.

“The results of our latest survey of AMGA medical groups and health systems show the continual decreases are having a very real impact on patient services, and the expected impact of a further reduction will be much more severe,” Penso said. “Congress can act to reverse the cut in the proposed physician fee schedule, ensuring patient access to the quality care our members provide.”

This slideshow details the findings of 40% or more. Health care organizations say they must take these actions to make ends meet in 2025. Also included are the percentages of medical groups that took those steps in 2024 due to this year’s lower Medicare physician reimbursement. For more information, visit AMGA’s #stopthecuts website.