WASHINGTON, D.C. – U.S. Senators Peter Welch (D-Vt.) and John Boozman (R-Ark.) led a bipartisan group of 39 Senators in calling on Senate leaders to protect access to Medicare services by ensuring health care providers who treat Medicare patients are adequately compensated for the care they deliver. 

The U.S. Centers for Medicare & Medicaid Services (CMS) is proposing a rule to cut payments to Medicare-serving physicians by 2.8% in 2025. This would represent the fifth consecutive year that reimbursement rates were reduced. 

“Persistent instability in the health care sector––due, in part, to consistent payment cuts––impacts the ability of physicians and clinicians to provide the highest quality of care,” the Senators wrote to Majority Leader Chuck Schumer and Republican Leader Mitch McConnell. “These continued payment cuts undermine the ability of independent clinical practices––especially in rural and underserved areas––to care for their communities. Some practices have limited the number of Medicare patients they see, or the types of services offered.” 

Text of the letter can be found below and here. 

Dear Majority Leader Schumer and Minority Leader McConnell: 

We write to request that you urgently address the 2.8 percent cut to Medicare payments that will go into effect on January 1, 2025. Failure to address these cuts will threaten the continued ability of physicians and other healthcare providers to care for their patients. 

On November 1, 2024, the U.S. Centers for Medicare & Medicaid Services (CMS) released the Calendar Year 2025 Medicare Physician Fee Schedule (MPFS) Final Rule, which includes provisions subjecting all physicians and other clinicians treating Medicare patients in the outpatient setting to a 2.8 percent payment cut. The scheduled cut represents the fifth consecutive year that CMS has issued a fee schedule lowering payments to physicians and other clinicians. 

Persistent instability in the health care sector–due, in part, to consistent payment cuts–impacts the ability of physicians and clinicians to provide the highest quality of care. These continued payment cuts undermine the ability of independent clinical practices–especially in rural and underserved areas–to care for their communities. Some practices have limited the number of Medicare patients they see, or the types of services offered. 

In addition to addressing the looming 2.8 percent payment cut, Congress must develop long-term legislative solutions to reform the Medicare Access and CHIP Reauthorization Act (MACRA), such as enacting targeted reforms to statutory budget neutrality requirements and payment updates reflective of inflationary pressures. These efforts are critical to supporting patient access to high-quality Medicare-covered services and bolstering our healthcare workforce. 

On behalf of patients and healthcare providers, we look forward to working together to address the 2.8 percent payment cut and create stability in the Medicare program for our nation’s seniors. 

We appreciate your attention to this critical matter. 

Sincerely, 

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