Bill would update decades-old Medicare spending index that triggers harmful cuts to rural health care providers
WASHINGTON, D.C. – U.S. Senators Peter Welch (D-Vt.), John Boozman (R-Ark.), Angus King (I-Maine), Thom Tillis (R-N.C.), Jeanne Shaheen (D-N.H.), and Roger Marshall (R-Kan.) are leading efforts to protect access to Medicare services by reforming the program’s physician fee schedule with the introduction of the bipartisan Physician Fee Stabilization Act. The legislation would increase the budget neutrality threshold to $53 million with an increase every five years to keep pace with the Medicare Economic Index.
“So many Vermonters rely on Medicare for their health care coverage—it’s critical that their health care providers are fairly compensated,” said Senator Welch. “This commonsense, bipartisan bill updates an outdated, decades-old policy that triggers harmful cuts to provider payments. We’re working across the aisle to ensure providers in Vermont and rural communities around the country can keep treating Medicare patients and get reimbursed fairly for the care they provide.”
“Medicare patients must have access to quality health services. Ensuring physicians are fairly compensated for their work will help deliver stability to providers so they continue to meet the needs of their communities. I’m proud to lead this bipartisan solution that enhances Medicare’s sustainability,” said Senator Boozman.
“Accessible and reliable healthcare is essential for seniors across Maine, especially for those in our most rural communities,” said Senator King. “The Physician Fee Stabilization Act would ensure that Medicare providers are adequately paid so that they can continue to offer their full range of services to Maine’s Medicare beneficiaries. I want to thank my colleagues, Senators Boozman, Welch, King, Tillis, and Shaheen for prioritizing the healthcare and well-being of our older Americans.”
“This legislation is a great step forward to provide stability for physicians serving our most vulnerable populations,” said Senator Marshall. “Medicare payment changes have been severely impacting doctors in rural Kansas and nationwide since I was practicing. It’s time to implement meaningful reforms. I am proud to support this bill and look forward to working with Senator Boozman to help physicians everywhere.”
“It’s critical we do all we can to ensure that Granite Staters who rely on Medicare for health insurance have access to the quality, affordable care they need,” said Senator Shaheen. “This bipartisan bill would make sure physicians are fairly compensated and guarantee adequate reimbursement for providers, which would help strengthen Medicare’s dependability for patients now and into the future.”
The budget neutrality threshold was last updated in 1992. The Physician Fee Stabilization Act is a critical step forward to ensure greater flexibility in determining pricing adjustments for services without triggering harmful annual payment cuts to Medicare-serving physicians.
“Our independent practice association, Vermont HealthFirst, represents 128 physicians who own and operate 62 primary care and specialty care practices located across rural Vermont. We strongly support the Physician Fee Stabilization Act introduced by Senator Welch and colleagues that updates the budget neutrality threshold under the Medicare physician fee schedule. The bill represents an important step toward correcting a damaging headwind that threatens the solvency of our practices,” said Susan Ridzon, Executive Director, Vermont HealthFirst.
“University of Vermont Health Network appreciates Senator Peter Welch’s leadership in taking an important step to address this major issue, which disproportionately impacts rural Americans. The physician fee schedule has not kept up with inflation for decades, which impacts access and adds to the burden of commercial insurers who shoulder more than their fair share of increasing health care costs. This is the kind of decisive, bipartisan action we need our federal government partners to take to ensure patients and communities have access to high quality care close to home,” said Dr. Sunny Eappen, President and CEO, University of Vermont Health Network.
“The Vermont Medical Society, representing 2900 physicians, physician assistants, and medical students across Vermont, extends our thanks and strong support to Senator Welch for working to raise the Medicare Physician Fee Schedule budget neutrality cap. Vermont medical practices, from small independent offices to hospital-based clinics, cannot continue to bear year over year fee schedule cuts. This bill is particularly important to keeping medical practices open and able to serve patients in a rural state like Vermont with high Medicare coverage and a Medicaid fee schedule that mirrors the Medicare formula,” said Jessa Barnard, Executive Director, Vermont Medical Society.
“On behalf of all of Vermont’s hospitals, the Vermont Association of Hospitals and Health Systems strongly supports Sen. Welch’s bill to update the budget neutrality threshold for the physician fee schedule for the first time since 1992. His proposed adjustment for inflation will positively impact our rural hospitals struggling to recruit and retain providers. We applaud Sen. Welch’s fair and reasonable approach to this issue,” said the Vermont Association of Hospitals and Health Systems.
The Physician Fee Stabilization Act has support from nationwide health organizations including theAmerican Medical Association (AMA), American Academy of Dermatology (AAD), American Optometric Association (AOA), Society of Thoracic Surgeons (STS), American College of Surgeons (ACS), American Osteopathic Association (AOA), National Rural Health Association (NRHA), American Association of Colleges of Osteopathic Medicine (AACOM), American College of Radiology (ACR), American Academy of Orthopedic Surgeons (AAOS), American Gastroenterological Association (AGA), Alliance of Specialty Medicine (ASM), American College of Obstetricians and Gynecologists (ACOG), American Urological Association (AUA), American Association of Neurological Surgeons (AANS), Congress of Neurological Surgeons (CNS), American Academy of Ophthalmology (AOA), American Psychiatric Association (APA), American College of Physicians (ACF), American Academy of Family Physicians (AAFP), American College of Rheumatology (ACR) and American College of Cardiology (ACC).
Senators Welch and Boozman are long-time advocates of protecting access to Medicare services. In February, the Senators led an effort to ensure providers who treat Medicare patients are adequately compensated.
Read the full text of the bill.
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