MGMA Asks Congress to Take Action on Medicare Conversion Factor Cut

The Medical Group Management Association (MGMA) recently sent a letter to the119th Congress, demanding immediate action on Medicare physician payment after the 2.83% cut to the conversion factor went into effect on January 1, 2025. MGMA notes that negative impacts have already started as a result of the decrease in reimbursement, including uncertainty and financial shortfalls from Medicare and commercial contracts that are tied to Medicare rates and/or Medicaid reimbursement rates in states that use Medicare as a benchmark.

MGMA notes that “without retroactively addressing the cut and providing a modest update, medical groups will endure an untenable further reduction to physician reimbursement that will compound other financial pressures, such as staffing shortages and rising operational costs.” MGMA conducted...

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