April 7, 2023
Providers | Tea Leaves
  • A new bipartisan House bill seeks to tie physician payment rates to inflation as doctor groups have implored lawmakers to overhaul the federal pay process. The Strengthening Medicare for Patients and Providers Act, introduced Thursday, aims to address concerns amid the industry that Medicare payments have not kept pace with financial challenges such as inflation. Data compiled by the American Medical Association showed that after adjusting for inflation in practice costs, Medicare payments to physicians declined 26% from 2001 through 2023. If the legislation becomes law, it would transition to a single conversion factor equal to the percentage increase in the Medicare Economic Index, which is the impact of inflation on physician office costs and wage levels. (Article here)