AMGA: Medicare Conversion Factor Cut Could Force Staff Layoffs
The leaders of the Alexandria, Va.-based American Medial Group Association (AMGA) on Oct. 25 urged members of Congress to reverse a pending cut in the Medicare conversion factor could hurt physician groups, with 49 percent of respondents to a member survey saying that they might have to lay off or furlough staff in 2024 if cuts continue.
A press release from AMGA began thus: “AMGA today called on Congress to act to reverse a pending cut in the Medicare conversion factor that would continue to strain medical groups and integrated systems of care. As part of its proposed physician payment rule for 2024, the Centers for Medicare & Medicaid Services (CMS) announced a reduction in the Medicare conversion factor by 3.4 percent. This reduction would continue the effects of four years of unsustainable cuts to Medicare Part B services on medical groups and integrated systems of care already overstretched by the continued COVID-19 pandemic, workforce shortages, and rising inflation. In a letter to Congressional leadership, AMGA emphasized the need for Congress to address the Medicare conversion factor cuts by the end of the year.”
“Healthcare providers need predictable, stable financing that does not require annual end-of-year fixes,” AMGA president and CEO Jerry Penso, M.D., said in a statement contained in the press release. “AMGA members need bipartisan solutions that ensure that they are paid properly without fear of additional cuts to their Part B reimbursements. Congress should reverse these cuts so AMGA members can continue providing robust services to their patients and communities.”
The press release went on to note that “AMGA recently surveyed its membership on what actions they would be forced to take if these Medicare cuts were implemented. They also were asked about what actions they took in 2023 in reaction to those Medicare cuts. Twenty-four percent of AMGA respondents either furloughed or laid off employees in 2023. Forty-nine percent of respondents said they will be forced to furlough or lay off employees in 2024 if the cuts continue. Also, 44 percent of these provider groups eliminated services to Medicare patients in 2023, and 65 percent expect to continue doing so in 2024. Twenty-one percent of respondents instituted delays in social determinants of health investments, and 57 percent are expected to continue these delays in 2024. AMGA created an infographic that sums up the implications of these cuts, which would result in decreased access, longer wait times, more inconvenience for patients, and decreased investments in programs that address community health issues.”
This was not the first time that AMGA had expressed its concerns over this issue. On Sep. 11, the association had posted a press release to its website that began, “AMGA today expressed its concerns regarding the proposed cut in the Medicare conversion factor, which if implemented, would reduce Medicare payments to healthcare providers. While the cost of healthcare is increasing, Medicare’s payments have not kept pace. AMGA members are not in a position to absorb these cuts, and they have stated that the decrease may result in a reduction of services, staff, or both. Congress must intervene to stop the reduction in the Medicare conversion factor.
“This is no longer a theoretical problem for AMGA members,” said AMGA President and CEO Jerry Penso, MD, MBA. “AMGA members provide vital services to their communities, and the cost of doing so has continued to increase. Medicare’s reimbursement system needs to reflect this reality. This annual cycle of cuts limits AMGA members’ ability to provide care and impedes investment in the future. Congress needs to prevent these cuts.”
In its CY2024 Physician Fee Schedule proposed rule, the Centers for Medicare and Medicaid Services (CMS) is proposing a 3.36 percent decrease in the conversion factor, from $33.89 to $32.75. AMGA opposes this cut, which is in addition to cuts that have accumulated over the years. The conversion factor has decreased by 3.3 percent in 2021, by 0.80 percent in 2022, and by 2 percent in 2023.”
For more information on AMGA’s efforts to stop the Medicare reimbursement cuts, visit amga.org/stopthecuts.
