MGMA Calls on Congress to Take Action on Medical Group Issues
As the new Congress gets underway, physician groups across the U.S. are feeling major pressures in terms of payment and policy reform. Given that major issues were not resolved in the continuing resolution that was passed by both houses of the U.S. Congress on Dec. 20 and signed into law by President Joe Biden the next day, in order to avert a federal government shutdown, the associations representing medical groups are speaking out and urging action.
Under the signature of senior vice president of government affairs Anders Gilberg, the leaders of the Englewood, Colo.-based Medical Group Management Association (MGMA) sent a letter on Jan. 8 to the four leaders of the two national political parties in both houses of Congress, calling on them to act immediately to provide payment and policy relief around issues that medical groups are facing. The letter was addressed to House Speaker Mike Johnson (R-La.), Senate Majority Leader John Thune (R-S.D.), House Minority leader Hakeen Jeffries (D-N.Y.), and Senate Minority Leader Chuck Schumer (D-N.Y.)
The letter began thus: “Dear Speaker Johnson, Majority Leader Thune, Minority Leader Jeffries, and Minority Leader Schumer: On behalf of our member medical group practices, the Medical Group Management Association (MGMA) thanks you for your leadership in supporting medical group practices’ ability to provide high-quality, cost-effective care. While we appreciate Congress acting near the end of last year to extend certain healthcare policies, such as the 1.0 work Geographic Practice Cost Index (GPCI) floor and telehealth flexibilities through March 31, 2025, many provisions that are important to medical groups were ultimately removed from the American Relief Act, 2025 (ARA) despite having received broad bipartisan support.”
Indeed, the MGMA leaders wrote on Wednesday, “Of utmost urgency is the 2.83-percent cut to the Medicare physician fee schedule that went into effect on Jan. 1, 2025. It demands immediate attention. Medical groups have already begun to feel the adverse effects of this significant decrease in reimbursement, heading into the new year facing uncertainty and financial shortfalls from not only Medicare but commercial contracts tied to Medicare rates, as well as Medicaid reimbursement in states that use Medicare as a benchmark. Lawmakers are playing a dangerous game that will ultimately damage patients’ access to physicians who can no longer deal with the chaos caused by congressional inaction to fix a reimbursement formula that continues to destabilize the Medicare program. Congress cannot wait until the March 14 federal government funding deadline — swift action is required.”
What’s more, the MGMA leaders stated, “In addition to rectifying the cut to the Medicare conversion factor and providing an inflationary update for 2025, Congress needs to take swift action on other issues of vital importance to medical groups by: passing bipartisan-supported prior authorization reform, extending the Advanced Alternative Payment Model (APM) incentive payment for 2025, and further extending the 1.0 work GPCI floor and telehealth policies that now expire at the end of March.”
As its website notes, “Medical Group Management Association (MGMA) is the premier association for professionals who lead medical practices. Since 1926, through data, people, insights, and advocacy, MGMA empowers medical group practices to innovate and create meaningful change in healthcare. With a membership of more than 60,000 medical practice administrators, executives, and leaders, MGMA represents more than 15,000 organizations of all sizes, types, structures and specialties that deliver almost half of the healthcare in the United States.”
