Alexandria, VA - AMGA today called on Congress to act to reverse a pending cut in the Medicare conversion factor that would continue to strain medical groups and integrated systems of care. As part of its proposed physician payment rule for 2024, the Centers for Medicare & Medicaid Services (CMS) announced a reduction in the Medicare conversion factor by 3.4%. This reduction would continue the effects of four years of unsustainable cuts to Medicare Part B services on medical groups and integrated systems of care already overstretched by the continued COVID-19 pandemic, workforce shortages, and rising inflation. In a letter to Congressional leadership, AMGA emphasized the need for Congress to address the Medicare conversion factor cuts by the end of the year.
“Healthcare providers need predictable, stable financing that does not require annual end-of-year fixes,” said AMGA President and CEO Jerry Penso, MD, MBA. “AMGA members need bipartisan solutions that ensure that they are paid properly without fear of additional cuts to their Part B reimbursements. Congress should reverse these cuts so AMGA members can continue providing robust services to their patients and communities.”
AMGA recently surveyed its membership on what actions they would be forced to take if these Medicare cuts were implemented. They also were asked about what actions they took in 2023 in reaction to those Medicare cuts. Twenty-four percent of AMGA respondents either furloughed or laid off employees in 2023. Forty-nine percent of respondents said they will be forced to furlough or lay off employees in 2024 if the cuts continue. Also, 44% of these provider groups eliminated services to Medicare patients in 2023, and 65% expect to continue doing so in 2024. Twenty-one percent of respondents instituted delays in social determinants of health investments, and 57% are expected to continue these delays in 2024. AMGA created an infographic that sums up the implications of these cuts, which would result in decreased access, longer wait times, more inconvenience for patients, and decreased investments in programs that address community health issues.
About AMGA
AMGA is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans.
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