December 13, 2023: MGMA supports legislation to avert Medicare cut

December 13, 2023 

Re: MGMA’s Support for the Preserving Seniors’ Access to Physicians Act of 2023

Dear Representatives Murphy, Davis, Burgess, Panetta, Wenstrup, and Bucshon:

On behalf of our member medical group practices, the Medical Group Management Association (MGMA) writes to thank you for introducing the Preserving Seniors’ Access to Physicians Act of 2023. With a membership of more than 60,000 medical practice administrators, executives, and leaders, MGMA represents more than 15,000 group medical practices ranging from small private medical practices to large national health systems representing more than 350,000 physicians. MGMA’s diverse membership uniquely situates us to offer the following recommendations. We emphatically support this vital legislation and urge Congress to pass it as soon as possible.

The Centers for Medicare and Medicaid Services (CMS) finalized a 3.37% cut to the Medicare conversion factor set to take effect on Jan. 1, 2024. Without stopping this cut, medical groups will endure an additional reduction to physician reimbursement following previous cuts, thereby exacerbating the myriad financial pressures such as staffing shortages and inflation facing medical groups today.

According to MGMA data, physician practices saw total operating cost per FTE physician increase by over 63% from 2013 – 2022, while the Medicare conversion factor increased by only 1.7% over the same timeframe. Further, 89% of MGMA members reported an increase in operating costs in 2023.1 It is imperative Congress act swiftly to stop the cut to avoid damaging the financial viability of practices and undermining Medicare access and the stability of the program.

View the full letter