On September 10, AHCA/NCAL, along with 120 state and national provider organizations, submitted a joint coalition letter to Congressional leadership, urging the enactment of significant reforms to Medicare Physician Fee Schedule (PFS) payment methodologies. Here's why this matters:
- PFS payments have declined by more than 29% since 2001, when adjusted for inflation, despite occasional Congressional relief.
- Bipartisan legislation has been introduced in Congress, aimed at stabilizing PFS payment rates while more permanent solutions are considered.
- The letter emphasizes, “Step one is ensuring that Medicare payments to clinicians in 2025 and beyond are adjusted each year with an inflationary update.”
Why is immediate action essential?
Without timely Congressional intervention, Medicare Part B payments could decrease by another 2.8% starting in January 2025. Many AHCA/NCAL member residents depend on Part B services from a variety of health care providers, including:
- Physicians
- Nurse practitioners
- Occupational and physical therapists
- Speech-language pathologists
- Portable x-ray and clinical laboratory suppliers
These providers would be subject to the cuts, which could lead to reduced access to essential services if they determine they can no longer serve AHCA/NCAL members' residents.
What’s at stake?
For AHCA/NCAL and the residents they represent, this issue goes beyond finances—it’s about safeguarding access to high-quality health care for some of the most vulnerable individuals. Without reform, the future availability of crucial Part B services is at serious risk.