The Centers for Medicare and Medicaid Services (CMS) has finalized a 2.9% cut to physician payments for 2025.
Here are the key points:
Payment Reduction: The cut is part of the Medicare Physician Fee Schedule rule for 2025, resulting in a conversion factor of $32.35, down from $33.29 in 2024.
Reasons for the Cut: The reduction includes the expiration of a temporary 2.93% increase for 2024 and adjustments for changes in work relative value units for certain services.
Industry Reaction: Major physician groups, including the American Medical Association, have expressed strong opposition, citing financial strain on medical practices and potential impacts on patient care.
Congressional Response: When Congress reconvenes, lobbying efforts are expected to stop or mitigate the cut.
This decision has sparked significant debate, with healthcare providers concerned about the sustainability of their practices, especially in rural and underserved areas.
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