Physician Payment Reform


Medicare physician payment reform is ¶¶Òô´ó¹Ï’s top advocacy priority. Current Medicare payments have not kept up with practice cost inflation and are further reduced by frequent budget neutrality adjustments. The budget neutrality threshold of $20 million, established in 1992, has not been updated, leading to payment cuts when exceeded. ¶¶Òô´ó¹Ï calls on policymakers to reform Medicare physician payments to ensure adequacy, fairness, stability, and predictability, while supporting value-based, high-quality care.

Key Issues

Implement Annual Inflation Adjustments: Establish a positive annual inflation adjustment for physician payments.

Revise Budget Neutrality Requirements: Replace or eliminate outdated budget neutrality requirements in the physician payment system.

Reduce MIPS Burden: Work to decrease the administrative and financial burdens associated with participation in the Quality Payment Program.