Federal Legislative Activities on Medicare

Medicare physician payment reform

On January 1, 2010, physicians face a minimum across-the-board cut of 21% in Medicare payments. This 21% cut will grow to about 40% in cumulative cuts by 2016 unless Congress acts soon to replace the outdated payment update formula and permanently reform Medicare’s physician payment system.

Persistent, looming cuts and low payments reduce access to care and keep physicians from participating in quality initiatives and purchasing health information technology. Medicare payments should cover the increasing cost of providing care so that seniors can be assured of continued access to physician care.

Permanent reform of the archaic Medicare physician payment system is among the core principles the AMA is urging Congress to include as part of comprehensive health system reform this year.

Go to the AMA’s Get Involved page to receive legislative updates, contact your elected officials and find more information to share with your patients.

See the AMA Physician Payment Action Kit for more information on the effect the upcoming Medicare cuts will have on physicians in your area. Also, see the AMA’s Vision for Health System Reform for more information on our recent efforts in Congress on comprehensive health system reform.