House Speaker Mike Johnson (R-LA) was able to keep the government funded through the first few weeks of January, but a possible cut in Medicare payments to doctors is still a live matter for the healthcare industry. As lawmakers face pressure from the Left and Right to take action, the question is whether to apply a Band-Aid, as they did last year, or take up more substantial Medicare reforms.
Many physicians feel that Medicare’s payments are inadequate and have gotten worse over time. Doctors face a 3.4% cut this year under the law, and the fear is they will eventually decide to stop taking Medicare patients. This could make it harder for seniors to access care.
Since 2017, the main ways doctors have been able to earn a pay raise in Medicare are either by performing well on quality metrics or by receiving bonuses to participate in “value-based” reimbursement arrangements called alternative payment models, or APMs. These include policies such as shared savings for doctors who reduce healthcare costs.
