Medicare Physician Payment Cuts Halted by U.S. Senate

Earlier this month, President Joe Biden signed legislation passed by the U.S. Senate into law that halted Medicare physician payment cuts. Originally scheduled to go into effect on January 1, the payment cuts would have severely impacted physicians.

Alongside a host of other state medical associations and physician organizations, the American Medical Association (AMA) and the Arizona Medical Association (ArMA) worked diligently to advocate against Medicare physician payment cuts.

According to the AMA, the legislation will cause:

• A three month delay (January 1- March 31) in continuing the 2% Medicare sequester, followed by a reduction to 1% for three months (April 1-June 30);
• A increase in the Medicare physician payment schedule of 3% for the period of one year;
• A year-long pause in the cuts to the clinical lab fee schedule; and
• A year-long pause in the Medicare radiation oncology demonstration.

Additionally, the bill will erase the 4% Medicare PAY-GO cut and prevent any additional PAY-GO cuts through 2022.

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