2026 AADA Legislative Conference: Legislative ask
Medicare Physician Payment Reform: Ensure Medicare stability for patients and physicians
Medicare physician payment has failed to keep up with inflation, threatening the viability of medical practices and patient access to care. The current payment structure has contributed to consolidation and increased hospital ownership of physician practices, which are more costly, reduce competition, and are less patient-centered. Annual cuts to Medicare payment jeopardize physicians’ ability to keep the doors open and care for patients in our communities.
Legislative ask
Take action to address the systemic issues within the Medicare physician payment system and safeguard physicians’ ability to provide patient access to care. We urge Congress to:
House:
Oppose CMS’s proposed CY 2027 Medicare Physician Fee Schedule that includes cuts to same-day Evaluation & Management Services and eliminates the Indirect Cost Index used to calculate practice expenses, and results in a 9% cut to dermatology practice’s reimbursement in 2027.
Cosponsor H.R. 9693, the Patients First Act, which would modernize the Medicare physician payment system by creating a permanent, inflation-based update tied to the Medicare Economic Index (MEI), reform budget neutrality policy, and reduce administrative burdens while providing physicians with more input on quality measures.
Senate:
Oppose CMS’s proposed CY 2027 Medicare Physician Fee Schedule that includes cuts to same-day Evaluation & Management Services and eliminates the Indirect Cost Index used to calculate practice expenses, and results in a 9% cut to dermatology practice’s reimbursement in 2027.
Cosponsor S. 5180, the Provider Reimbursement Stability Act, which would reform budget neutrality policy by updating the budget neutrality threshold, improving utilization accuracy, providing timely updates to direct costs, and limiting annual conversion factor variances.
