The AMA is pushing Congress to overhaul Medicare physician payment, which has dropped 33% since 2001 after inflation. Key proposals include tying payments to the Medicare Economic Index and replacing the burdensome MIPS program. Without broader reform, experts warn patients — especially in rural areas — will face fewer care options and longer wait times.
The American Medical Association is renewing its call for sweeping Medicare physician payment reform, warning that the status quo is pushing independent practices — particularly in rural and underserved areas — toward closure. At a May House Energy and Commerce Subcommittee hearing, the AMA backed several bills aimed at stabilizing payments, replacing the flawed Merit-Based Incentive Payment System (MIPS), and permanently shoring up the Alternative Payment Model (APM) incentive.
The core problem: physician payment has fallen 33% since 2001 in inflation-adjusted terms, and doctors remain the only Medicare providers without an automatic annual inflationary update. Meanwhile, MIPS compliance costs practices roughly $12,800 per clinician per year and eats up 202 hours of physician and staff time — with feedback arriving up to 18 months after care is delivered.
Key Takeaways:
Why it matters: If reforms stall, patients face longer waits, fewer independent practice options, and shrinking access to primary care — precisely when continuity of care matters most.
