Medicare reimbursement rates explained: Why they keep declining, and what the future holds

Medical Economics February 17, 2025
Medical Economics Staff

Key Takeaways

• Medicare’s reimbursement system has struggled to keep pace with inflation, causing financial strain on medical practices and impacting patient access.
• The Resource-Based Relative Value Scale (RBRVS) and MACRA aimed to address reimbursement challenges but introduced complexities and disparities.
• The 2025 Medicare Physician Fee Schedule’s 2.83% cut has intensified calls for reform, highlighting the need for sustainable solutions.
• Ongoing debates focus on balancing cost control, fair compensation, and ensuring access to care for Medicare beneficiaries.

Physicians have complained that Medicare reimbursement rates have not kept pace with inflation, and now in 2025, are dealing with a 2.83%reimbursement cut. There’s little chance of relief in sight. How did we get here?

When Medicare was signed into law in...

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