The legislation applies a permanent, inflation-based change to the Medicare physician fee schedule conversion factor.
While Congress has taken some steps to account for Medicare cuts, reimbursement rates have continued to decline. Rates have declined by 26 percent since 2001 when adjusted for inflation, according to the American Medical Association.
“The addition of an inflationary update will provide budgetary stability as clinicians — many of whom are small business owners — contend with a wide range of shifting economic factors, such as increasing administrative burdens, staff salaries, office rent and purchasing of essential technology,” the letter reads.
