CMS Finalizes 2025 Physician Fee Schedule Cut

Last week, the Centers for Medicare and Medicaid Services (CMS) finalized the Medicare Physician Fee Schedule for 2025. It includes a 2.9% cut to physician pay.

The fee schedule includes policies aimed at improving access to primary care and boosting reimbursement for behavioral health, but the pay cut instantly drew harsh criticism from industry representatives. Inside Health Policy explains that the annual payment increases have fallen behind rising practice costs with the Medicare Economic Index (MEI) projecting costs will rise by 3.6% this year.

Medpage Today reports that medical groups across the spectrum appealed to Congress for assistance blocking the cuts. From American Medical Association President Bruce Scott, MD:

Unless Congress acts during the lame duck, the cuts will go through. Physicians and patients are watching, wondering if Congress is up to the task of fixing this broken reimbursement system. Thankfully, there are signs that lawmakers recognize the gravity of the situation.

A bipartisan group of House members introduced legislation on Tuesday that would block the fee schedule cut, and was endorsed by the AMA. According to Modern Healthcare, physicians are also asking Congress to prioritize replacing the Merit-based Incentive Payment System (MIPS) during the lame duck this month.

CMS also finalized the digital health policies approved in the July draft rule, but they fell short of a full digital health payment policy that would be used to reimburse for digital therapeutics and telehealth. Fierce Healthcare notes that while Congress is all but guaranteed to extend telehealth flexibilities for another two years, CMS is limited in its ability to address coverage expansion.