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Physician groups call for Senate to fix reimbursement in reconciliation bill

A fix to the Medicare Physician Fee Schedule passed in the House version of the bill and should be included in the Senate draft, groups say.
By Jeff Lagasse , Editor
Capitol building in Washington, D.C. at dusk
Photo: John Baggaley/Getty Images

A group of medical societies and physician groups has sent a letter to senators saying that a fix to the Medicare Physician Fee Schedule that was passed in the House version of the reconciliation bill should be included in the Senate draft.

Writing to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, 75 groups and societies said the Medicare Payment provision in the House-passed One Big Beautiful Bill represents a "critical step" toward stabilizing the Medicare Physician Fee Schedule (MPFS).

WHAT'S THE IMPACT

The provision, the groups said, protects access to care for seniors and those with disabilities, and supports small businesses and competition.

According to the groups, Section 44304 of the bill ties the MPFS to inflation by establishing a permanent, annual update based on the Medicare Economic Index, beginning in the next plan year.

"The provision reflects policy principles that physician and other clinician stakeholders have long advocated for," the letter read. "Moreover, it reflects many members across both chambers, who have long asked for prior Senate leaders to prioritize their communities."

Access is at risk, the groups said. Under the Medicare program, the MPFS sustains access to entire care teams, including physicians, nurse practitioners and others, and while Congress has intervened in prior years to soften the impact of some reductions, it failed to prevent the 2025 payment reduction, "further compounding the persistent undervaluation of clinician services," the groups wrote.

Medicare physician payments have declined 33% since 2001, with visible consequences, including the loss of independent physicians and practices in rural areas. 

"If Congress continues to delay action, access to primary and specialty care will continue to erode, forcing patients to travel long distances, leave their communities, or wait until their health deteriorates into an emergency that's harder and more expensive to recover from," the letter read.

THE LARGER TREND

The Senate is facing a Friday deadline to vote on the spending bill to meet the goal of getting it done before leaving for a July 4 recess. Senators are reportedly at odds over Medicaid spending cuts while conservatives want to see more slashed from the budget. 

A recent report from Families USA found rural hospitals will have to scale back services or close altogether should the Senate pass President Donald Trump's Big Beautiful Bill.

The Senate version of the bill includes steeper cuts to Medicaid than the projected $715 billion in the House bill that passed in May. 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.