The AASM signed on to an American Medical Association letter urging Congress to reform the Medicare Access and CHIP Reauthorization Act (MACRA), emphasizing the growing unsustainability of the current Medicare physician payment system and the necessity for policy changes to tackle possible adverse effects impacting patient accessibility and standards of care. The letter was drafted in response to the 2.8% reduction in overall physician payments proposed by the Centers for Medicare and Medicaid Services (CMS) for 2025. The decrease primarily stems from the expiration of a temporary 2.93% update to the conversion factor at the close of 2024 and a 0% baseline update for 2025 under MACRA, which encompasses the Quality Payment Program.
The core aspect of enhancing the existing payment system involves adjusting the Medicare Physician Fee Schedule (MPFS) to align more closely with the financial and clinical dynamics of contemporary medical practice. To address this critical objective, AMA’s letter for MACRA reform concentrates on four primary areas of improvement:
- Implementing a yearly, permanent inflationary adjustment in Medicare linked to the Medicare Economic Index (MEI)
- Introducing reforms for budget neutrality
- Revamping MACRA’s Merit-based Incentive Payment System (MIPS)
- Making changes to Alternative Payment Models (APMs)
Members may send questions about MACRA to registry@aasm.org.
