August 2, 2023 – Recently, the Centers for Medicare and Medicaid Services issued the 2024 Medicare Physician Fee Schedule that includes proposed changes to the Medicare Shared Savings Program. The agency proposed a calendar year 2024 conversion factor of $32.75, a 3.4% decrease from the previous year. Healthcare organizations have weighed in with their concerns regarding the potential ruling. Some of the major organization’s comments are listed below:
AMGA – “The Centers for Medicare & Medicaid Services (CMS) proposed a cut in the Medicare conversion factor that, if left unaddressed, would exacerbate the financial pressures facing AMGA members, as Medicare physician payments already are not keeping up with the increasing cost of delivering healthcare.”
AHA – “The AHA is concerned that CMS is proposing an outpatient hospital payment update of only 2.8% in spite of persistent financial headwinds facing the hospital field. Most hospitals across the country continue to operate on negative or very thin margins that make providing care and investing in their workforce very challenging day to day. Without a more robust payment update in the final rule, hospitals’ and health systems’ ability to continue caring for patients and providing essential services for their communities may be jeopardized.”
AAFP – “While we appreciate that Congress enacted limited conversion factor relief for 2024, a nearly 3.4 percent reduction in the Medicare conversion factor will still result in untenable cuts for all physicians. These cuts are unacceptable and could threaten practice stability and undermine physicians’ goals of increasing access to primary care. MedPAC and the Medicare Board of Trustees share our concerns and recently recommended action to update payment rates.”
AMA – “At the Annual Meeting of the American Medical Association (AMA), the nation’s physicians called for a multipronged campaign to overhaul the outdated Medicare payment system, saying that patient access and survival of practices are at risk. Physicians from across the country spoke of their intense frustration with the flawed payment formula and the need for Congress to fix it.”
‘This cannot wait; we are past the breaking point. Congress must urgently address physician concerns about Medicare to account for inflation and the post-pandemic economic reality facing practices nationwide. Our patients are counting on us to deliver the message that access to health care is jeopardized by Medicare’s payment system. Being mad isn’t enough. We will develop a campaign – targeted and grass roots – that will drive home our message,’ said AMA President Jack Resneck Jr., M.D.”
MGMA – “The proposed 2024 Medicare Physician Fee Schedule (PFS) raises significant concerns for medical groups related to its 3.4% reduction to the conversion factor, which further increases the gap between physician practice expenses and Medicare reimbursement rates. Medicare already largely fails to cover the cost of furnishing care to beneficiaries, and the proposed cut to the 2024 conversion factor compounds the problem. Implementation of a new add-on code (G2211) for complex patients highlights CMS’ flawed approach to addressing inadequate Medicare payments for primary care services using a budget neutral methodology.”