Our Voices Have Been Heard—Congress Acts to Reduce Cuts to 2024 Medicare Physician Payment

Members & Publications


March 12, 2024

On March 8, Congress passed a partial government funding package that contained a reduction of approximately half, eliminating 1.68% of the 3.37% cut to the Medicare Physician Fee Schedule that went into effect January 1, 2024.

AAPM&R has advocated extensively for lawmakers to eradicate the full proposed cut. Thank you to the more than 550 AAPM&R members who have contacted Congress through the Academy’s advocacy campaigns in 2023 and 2024.

While we appreciate Congress taking action to partially repeal this cut, there is still much work to be done. Physicians have faced two decades without positive updates to the MPFS, which is completely unacceptable, and we will continue our strong advocacy in 2024 for more sustainable physician payment reform.

Our advocacy efforts on this issue included more than 1,500 member letters to Congress, meetings with legislators on Capitol Hill, comments to CMS and coalition letters to Congress about the importance of reasonable compensation for physiatrists and the entire physician community. We recognize physiatrists have gone too long without positive payment updates or adjustments for inflation and rising practice costs. Comprehensive reform is the only reasonable next step.

Other health-related policies addressed in the legislation include:

  • Extension of the work geographic practice cost index (GPCI) floor through December 31, 2024.
  • Extension of incentive payments for participation in eligible alternative payment models at a reduced rate of 1.88%.
  • Prohibition of termination of Medicaid enrollment due to incarceration.
  • Elimination of certain disproportionate share hospital payment cuts.
  • Extension of funding for teaching health center graduate medical education programs, the National Health Service Corps, and Community Health Centers, through December 31, 2024.
  • Requirement for state Medicaid plans to provide coverage for medication-assisted treatment for opioid use disorder.

Your Academy will continue engaging with Congress and other Federal health policymakers to advocate for physician payment reform. Please contact healthpolicy@aapmr.org with any questions.

Legislation Introduced to Alleviate Impact of Conversion Factor Cut for 2021

Nov 09, 2020

Last month, two bills were introduced in the House proposing solutions to the estimated 10.6% Physician Fee Schedule conversion factor cut expected to go into effect January 1, 2021.  The bills offer some relief to the cut, but do not reflect a comprehensive or long-term solution.  AAPM&R has therefore chosen to remain neutral regarding these bills. 

Your Academy continues to advocate for a permanent solution to the conversion factor cut while maintaining the important payment increases to office and outpatient evaluation and management services.