Congress Averts Shutdown, Still Cuts Medicare Payment for 2025

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The American Relief Act of 2025, signed into law by President Biden Saturday morning, will extend funding for the government until mid-March. Congress was unable to include several of the Texas Medical Association’s federal goals as the new piece of legislation will not avert the 2.8% cut in Medicare physician payments that will start on Jan. 1, 2025.

The passed bill does not extend incentive payments for advanced alternative payment models and did not include provisions requiring Medicare Advantage plans to maintain accurate provider directories on a public website as well.

The Centers for Medicare & Medicaid Services (CMS) released this fall their annual announcement about Medicare participation options for physicians. In the notice, CMS reminds physicians “of the importance and advantages of being a Medicare-participating provider.” According to CMS, “Each year from mid-November through Dec. 31, providers can decide if they want to participate in Medicare for the upcoming year.

“If you don’t want to participate in Medicare next year, and you’re currently participating, write to each MAC that you sent Part B claims to telling them that you don’t want to participate effective Jan. 1, 2025. This written notice must be postmarked before Dec. 31, 2024.”

Physicians who wish to continue their Medicare participation do not need to undertake any additional steps. Physicians who wish to enroll can find steps on CMS’ website.
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Of other particular interest to Texas physicians, House Resolution 10545 includes:

  • Telehealth (Sec. 3207): The bill extends Medicare telehealth flexibilities (originally extended in 2023) through March 31, 2026. It also establishes payment for telehealth services provided by federally qualified health centers and rural health clinics.
  • Work geographic index floor (Sec. 3206.): The bill extends the 1.0 work geographic practice cost index floor used in the calculation of payments under the Medicare physician fee schedule through April 1, 2025.

Look for more information and updates in Texas Medicine Today. To speak directly with TMA billing and coding staff, visit TMA’s comprehensive Physician Payment Resource Center.

Last Updated On

December 21, 2024

Originally Published On

December 21, 2024

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