March 15, 2021: MGMA statement on MedPAC’s Medicare payment policy recommendations

FOR IMMEDIATE RELEASE:
March 15, 2021

Media Contact:
Emily Dowsett
Associate Director, Public Affairs
edowsett@mgma.com
 

MGMA statement on MedPAC’s Medicare payment policy recommendations

Anders Gilberg
Senior Vice President, Government Affairs
Medical Group Management Association

"MGMA is deeply troubled by MedPAC’s recommendation that Congress provide no payment update for physician services in 2022. Physician practices are subject to annual increases in staff salaries, rent, and supplies. Without a modest annual payment update to keep up with the cost of inflation, practices will ultimately be forced to make difficult decisions about Medicare participation.

MedPAC also states it does not anticipate any long-term effects related to the public health emergency (PHE) that would warrant changing the annual update to Medicare’s fee schedule for 2022. At this point, it is too early to assume that medical practices will not continue to experience financial challenges stemming from the COVID-19 pandemic next year or an acceleration in post-pandemic practice-cost inflation. Without congressional intervention, group practices will also face payment cuts in 2022 attributed to sequestration and a likely lower physician fee schedule conversion factor due to evaluation and management service revaluations.

MGMA is pleased to see that MedPAC recognizes the importance of being able to provide telehealth services to beneficiaries regardless of their location and conduct audio-only visits when clinically beneficial. However, we would like to see these changes implemented on a permanent basis. MGMA disagrees with MedPAC’s belief that following the conclusion of the PHE, Medicare should return to paying the lower facility rate for telehealth services."

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