Congress Adjourns Without Stopping Physician Pay Cut

On Dec. 20, Congress passed a short-term spending bill that does not include relief for physicians from a 2.8 percent Medicare payment cut that will take effect Jan. 1.

“By not acting before the end of the 118th Congress to stop another payment cut from taking effect, lawmakers failed physicians and America’s seniors,” says ASNC President Lawrence Phillips, MD, MASNC. “ASNC will be looking to its members to call on their elected officials and demand that payment cut relief is an immediate priority in January with the new Congress.”

Congressional leaders had struck a bipartisan and bicameral deal on a legislative package tied to a continuing resolution to keep the government funded while lawmakers negotiated a fiscal year 2025 spending bill. That deal included a 2.5 percent positive Medicare payment adjustment for physicians. These and other health provisions were on the verge of enactment before President-elect Donald Trump called on Republicans to scrap the measure.

What Happens Next?

The physician community still has an opportunity to convince Congress to halt the cut. The bill passed by Congress and signed into law by President Joe Biden keeps the government funded until March 14, 2025, while lawmakers continue to negotiate a fiscal year 2025 spending bill that could be a legislative vehicle for physician payment relief as well as other health provisions.

Physicians began 2024 facing a similar scenario because Congress had failed to address the physician payment cut at the end of 2023. Lawmakers ultimately acted in March 2024 to mitigate the cut, although the reduced payment cut was not applied retroactively.

For updates and calls to action, stay tuned to ASNC. 

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