01/15/2025    

MEDICARE ADVANTAGE

Medicare Advantage Programs Receive Boost While Physicians Wait: AMA

 

“CMS has announced that Medicare Advantage (MA) plans are expected to receive an average payment increase of 4.33% from 2025 to 2026. Meanwhile, physicians treating Medicare patients are facing their fifth consecutive year of payment cuts — this time by 2.8% — despite practice costs rising by 3.5% according to the Medicare Economic Index. 

 

So, while MA plans receive an increase beyond the expected healthcare inflation rate, Congress not only failed to provide a physician payment update but allowed a new round of cuts at the end of the lame duck. It's unbelievable they're giving insurance companies that had record profits an increase while at the same time cutting payment to physician practices that are struggling to survive. This contrast highlights the urgent need for Congress to prioritize linking payment to physician practices to the cost of providing care. Otherwise, with or without MA plans, patient access will suffer if physicians close their practices. A new Congress is meeting — it’s time for a new approach to physician payment reform.”

 

Source: Bruce A. Scott, MD, President, American Medical Association