Medicare Physician Payment Reform
Congress must develop long-term solutions to the systemic problems within the Medicare physician payment system and protect patient access to care.
The Problem
Physicians are the only Medicare providers who do not receive an annual inflationary update. Temporary fixes to this unsustainable system put physician practices and patient access to care at serious risk. Payment cuts and freezes have worsened the problem, yet policymakers have not addressed the root cause—the payment system itself. We need immediate and long-term, collaborative solutions to reform the Medicare payment model.
The Path Forward
A reformed Medicare physician payment system will better serve patients and physicians so practices of all sizes across rural and urban areas can thrive. The AMA and the Federation of Medicine created guiding principles (PDF) for reform efforts. Overall, a rational payment system would:
- Ensure financial stability and predictability
- Promote value-based care
- Safeguard access to high-quality care
Congress recently passed a reconciliation package with a temporary 2.5% payment increase in 2026. However, this package does not provide a long-term, sustainable solution to stabilize physician practices or protect patient access.