On January 1, 2025, a 2.83% Medicare reimbursement cut went into effect for physicians due to a rule finalized by the Centers for Medicare & Medicaid Services (CMS) in November of 2024. CMS also estimates a projected 3.6% increase in practice cost expenses for 2025, which means that physicians could face a 6.43% effective reduction in payment. According to the American Medical Association, when adjusted for inflation, Medicare reimbursement for physician services has declined 33% from 2001 to 2025.
In response to a looming crisis for Medicare patients and physician practices, Congressman and physician Greg Murphy, MD has introduced bipartisan legislation to Preserve Medicare for Patients and Physicians.
Medicare Preservation LegislationHere’s a quote from the Congressman’s press release:
“Physicians in America are facing unprecedented financial viability challenges due to continued Medicare cuts. Access to affordable and quality health care for millions of seniors is in severe jeopardy… Doctors see Medicare patients out of compassion, not for financial gain.”
For most physicians, that is true. However, I worry that the misbehavior of a small percentage of practitioners will reduce enthusiasm for a bill to fix a huge physician reimbursement problem. What’s even more worrisome is the possibility that fraud in the wound care space is helping to deplete the Medicare trust fund so fast that that there won’t be enough money left to fix the physician payment problem.
—Caroline
