Congress, Reverse Medicare Physician Pay Cuts

Anesthesiologists serve every patient and start every surgery in the operating room. We care for the patient that has been in a car accident or suffered a heart attack. We are there for the patient experiencing the joy of a new baby via C-section. No one wants a surgery that requires anesthesia. But when you do, you’re glad you have a highly skilled anesthesiologist at your side. 

On January 1, 2024, Congress failed to act. A 3.4% reduction in Medicare physician reimbursement went into effect, meaning that physicians who treat the millions of vulnerable American patients covered by Medicare and Medicaid are now being paid less despite rising inflation and other costs. This hurts millions of physicians practicing in every specialty, including my own.

That is why supporting H.R. 6683 is critically important. The Preserving Seniors’ Access to Physicians Act of 2023, introduced by Reps. Greg Murphy, MD (R-NC), Danny Davis (D-IL), Brad Wenstrup, DPM (R-OH), Jimmy Panetta (D-CA), Larry Bucshon, MD (R-IN), and Michael Burgess, MD (R-TX), would fully repeal the damaging cuts to the Physician Fee Schedule. This bipartisan legislation would also ensure that many of our most vulnerable patients can still access care.

The stakes are incredibly high. Medicare and Medicaid ensure that the most vulnerable in our communities can access the healthcare they need. Both programs have been underfunded for decades and don’t cover the total cost of treatment. A recent government report found that Medicare only has enough funding until 2031. From 2001 to 2023, physician payments by Medicare declined 26 percent, even after adjusting for inflation. Non-inflation-adjusted payments by Medicare to Anesthesiologists are lower than over thirty years ago.

More than a third of Americans lack access to a primary care provider or routinely put off regular check-ups. Many of these patients often won’t seek care for relatively treatable conditions until it becomes an emergency, placing added pressure on hospitals. What’s more, the pandemic placed immense emotional and physical stress on clinicians. More than 230,000 physicians, nurse practitioners, physician assistants and other clinicians left the profession in 2021. One in five clinicians plan to leave their practice within two years. The cuts to Medicare reimbursements will only exacerbate this trend. 

At the same time, physicians are facing continuous headwinds due to aggressive behavior by insurance companies who routinely terminate contracts, delay payments, and reimburse at values well below the level of care provided. UnitedHealthcare was ranked as the fourth most profitable company in the U.S. in 2022, according to Fortune 500. They brought in $20.6 billion in 2022, up 16.4 percent year over year. Cigna brought in $6.7 billion in profits last year as well. These companies are obligated to cover the lifesaving care their beneficiaries pay for through their premiums but refuse to do so. Coupled with the Medicare physician reimbursement cut, this refusal creates unsustainable financial pressure on the healthcare system, ultimately stifling access and harming care. 

TeamHealth’s 15,000 frontline clinicians provide lifesaving care 24 hours a day, seven days a week, 365 days a year, and are the first to respond to emergencies. Our dedicated clinicians want to care for the most vulnerable among us. I am urging Congress to give them the financial support they need to do this. 

TeamHealth is not alone in this fight. The American Medical Association (AMA), American College of Emergency Physicians (ACEP), American Society of Anesthesiologists (ASA), Emergency Department Practice Management Association (EDPMA), and others are firmly standing behind H.R. 6683. 

Congress has passed legislation averting similar cuts in years past. Congress can and should pass legislation that halts these cuts again. H.R.6683 represents an opportunity for Congress to support heroic healthcare providers, create long-term stability in our healthcare system, and ensure that patients can access the lifesaving care they need at hospitals nationwide. 

Jay Mesrobian, MD, MBA, FASA, FACHE, is the Chief Clinical Officer and National Medical Director of Anesthesiology at TeamHealth and has more than 25 years of experience in practice management and healthcare operations.



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