AMGA Calls on Congress to Stop Medicare Cuts

Final Conversion Factor Will Force Staffing Reductions, Service Cuts

Alexandria, VA – AMGA today objected to a looming 2.83% cut in the Medicare conversion factor. As finalized in the 2025 Medicare Physician Fee Schedule, the cut may force AMGA members to lay off staff and clinicians, further exacerbating patient access to care; not accept new Medicare beneficiaries as patients; and delay investments in social drivers of health. 

Despite a projected 3.6% increase in the Medicare Economic Index, which measures inflation in medical practice costs, the Centers for Medicare & Medicaid Services (CMS) finalized the cut of 2.83% in the Medicare conversion factor. This cut demonstrates the flaws in how Medicare reimburses Part B care and services. Specifically, the lack of an inflationary update in Part B reimbursement creates an unsustainable situation for AMGA members, who are facing a fifth consecutive year of lower Medicare reimbursement for physician and other clinician services.

“Our member survey paints a pretty bleak picture,” said AMGA President and CEO Jerry Penso, MD, MBA. “If Congress does not stabilize reimbursement, our members will be forced to take further action that will impact patient care.” 

AMGA recently surveyed its membership on what actions these Medicare cuts have forced them to take this year and what actions they will take in the future. For instance, 45% of respondents reported they will be forced to furlough non-clinical staff. But, the layoffs may be larger, as 31% indicated layoffs of clinical staff would be necessary. These layoffs will have an effect on access to care, as 27% said they would not accept new Medicare beneficiaries as patients. The survey is available on the AMGA website.

“Five years of Medicare cuts is going to catch up with us,” Penso said. “To keep the doors open, AMGA members are going to need to cut staff and reduce access to care for Medicare patients. The only real question is if Congress will come together to prevent this.”

Now that CMS has finalized this cut, Congress must act to prevent it from taking effect on January 1, 2025.  

For more information on AMGA’s efforts to stop the Medicare reimbursement cuts, visit amga.org/stopthecuts.

Telehealth Flexibilities

Separately, AMGA is pleased CMS is extending key telehealth flexibilities, including payment parity and the use of any location for patient care. While AMGA appreciates CMS’ action, Congress must act to permanently extend waivers of telehealth originating site and geographic limitations regulations. AMGA also strongly supports CMS’ efforts to protect provider privacy by allowing the use of practice locations instead of home addresses for telehealth services and strongly advocates for making this flexibility permanent.

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About AMGA

AMGA is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans. 

AMGA represents medical groups and integrated systems of care. Its diverse membership includes multispecialty medical groups, integrated delivery systems, accountable care organizations, and other entities committed to improving healthcare outcomes. AMGA advocates for the formation of innovative, clinically integrated systems of care that advance population health, enhance patient experience, and reduce healthcare costs. For more information, please visit www.amga.org.