The proposed physician fee schedule conversion factor for 2025 is $32.36, down from $33.29 in 2024, according to a July 10 CMS news release.
The proposal was met with criticism by both the American Medical Association and the Medical Group Management Association.
“With CMS estimating a fifth consecutive year of Medicare payment reductions — this time by 2.8 percent — it’s evident that Congress must solve this problem,” AMA President Bruce Scott, MD, said. “In addition to the cut, CMS predicts that the Medicare Economic Index — the measure of practice cost inflation — will increase by 3.6 percent. Facing this widening gap between what Medicare pays physicians and the cost of delivering quality care to patients, physicians are urging Congress to pass a reform package that would permanently strengthen Medicare.”
MGMA’s Senior Vice President of Government Affairs Anders Gilberg said the 2.8% reduction to the conversion factor would be alarming in the best circumstances, but to propose doing so at a time when 92% of medical groups report increased operating costs and are otherwise struggling to remain financially viable is critically short-sighted.”
“Medicare physician reimbursement is on a dire trajectory and these ongoing cuts continue to undermine the ability of medical practices to keep their doors open and function effectively — the need for comprehensive reform is paramount,” Mr. Gilberg said.
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