Protection of access to care for Medicare beneficiaries, particularly in rural and underserved areas, has drawn a proposal from a North Carolina congressman to combat a 2024 rule finalized by the Biden administration.
The Centers for Medicare & Medicaid Services (CMS) in November finalized a rule that took effect on Jan. 1, cutting Medicare reimbursement to physicians by 2.83%. The agency projected a 3.6% increase in practice cost expenses in 2025, effectively amounting to a 6.43% cut for physicians.
U.S. Rep. Dr. Greg Murphy, R-N.C., a practicing urologist, warned that “unprecedented financial viability challenges due to continued Medicare cuts” will negatively impact millions of American seniors.
“Doctors see Medicare patients out of compassion, not for financial gain,” Murphy said. “On top of that, the expense of providing care continues to rise due to medical inflation. This inflation, coupled with declining reimbursement rates, creates enormous financial pressures on physicians, forcing many to retire early, stop accepting new Medicare patients, or sell out to larger, consolidated hospital systems, private equity, or even insurance companies.”
Murphy emphasized that private practice medicine, which he describes as the most cost-efficient and personalized form of care, is in jeopardy. His proposed Medicare Patient Access and Practice Stabilization Act aims to prevent further cuts, provide an inflationary adjustment to ease care costs, and ensure Medicare remains viable for both doctors and patients.
Since 2001, Medicare reimbursement rates have dropped by 33%, according to Murphy. A March report from the Association of American Medical Colleges projects a shortage of 86,000 physicians by 2036. Chief Health Care Officer Dr. Jonathan Jaffery noted that primary care doctors and specialists are already difficult to find in some regions.
A bipartisan group of lawmakers, including U.S. Reps. Ami Bera, D-Calif., Kim Schrier, D-Wash., and Mariannette Miller-Meeks, R-Iowa, have spoken out against further cuts to Medicare reimbursements and emphasized the need for congressional action to support doctors and seniors.
“The rising cost of delivering care, coupled with increasing administrative burdens, makes it clear that Medicare payment policies must evolve to reflect the true costs faced by physicians,” said U.S. Rep. Claudia Tenney, R-N.Y.
