AMA urges transparency from CMS on Medicare cuts

In the wake of another year of Medicare payment reductions, the American Medical Association on Sept. 5 called on CMS to be "fully transparent" about the effects of the cuts on physicians and patients. 

The AMA's urging is in response to CMS' proposed 2.8% payment reduction in July, alongside the estimated increase in the Medicare Economic Index — the agency's measure of practice cost inflation — of 3.6%. Medicare physician payments declined 29% between 2001 and 2024, adjusted for inflation, according to AMA data. 

In a Sept. 5 comment letter on the issue, AMA called on Congress and CMS to enact "permanent, annual inflation-based update" to Medicare physician payments. 

"[This] proposed rule is silent on the impact of the growing gap between what Medicare pays for care and what it costs to provide that care, the letter said. "A chorus of authorities on the Medicare program has expressed concern about the ability of patients to continue receiving high-quality care as physician payments erode." 

The letter also noted that the proposed cuts are "self-defeating," as they would cut into spending on the Biden administration's key healthcare policies, including the Cancer Moonshot initiative and maternal health programs. 

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