March 21, 2025 – Last week, Congress passed a Continuing Resolution to fund the government through the fiscal year. However, the bill, led by Republican leaders, did not prevent the 2.8% Medicare physician payment cut.
Deepening Crisis for Physician Practices
When adjusted for inflation, this payment cut results in a 6.3% effective reduction for physicians. This marks the fifth consecutive year of Medicare cuts, adding financial strain on practices and threatening care for 66 million Medicare patients.
CMA Condemns Congressional Inaction
“The California Medical Association (CMA) is outraged by Congress’ failure to prevent yet another catastrophic cut to Medicare payments,” said CMA President Shannon Udovic-Constant, M.D. She emphasized that bipartisan support exists for fixing the flawed Medicare program and improving patient access.
Alarming Impact on Physician Practices
Medicare physician payment cut: Since 2001, Medicare physician fees have dropped by 33% when adjusted for inflation. Other Medicare providers, however, received regular updates. This trend is pushing small and rural practices toward financial collapse. In California, these effects are evident as physicians:
Face early retirement
Limit the number of Medicare patients they accept
Close their doors to new Medicare patients
Future Prospects for Reversing the Cut
U.S. Representative Greg Murphy, M.D. (R-NC), chair of the GOP Doctor’s Caucus, stated that Republican leaders assured him they would consider reversing the cut in a budget reconciliation bill expected for a vote in May.
Read More on MedLegalNews.com
Construction Company Cited $157,500 After Fatal Trench Collapse
Support Fire Recovery Efforts: California Invests $25 Million
California Lawmakers Demand Answers Over $3.44 Billion Medi-Cal Loan
California Attorney General Bonta Reaches $1.3 Million Settlement in Fake Health Insurance Case
DAS Appoints Orrian Willis to Interagency Advisory Committee on Apprenticeship
CA Insurance Commissioner Reappoints Two to WCIRB Governing Committee
Don’t Miss Key Updates!
Subscribe now to MedLegalNews.com for expert analysis and timely updates on Medicare reforms and healthcare policies.