The Background: On January 1, a 2.8% cut to Medicare physician reimbursement went into effect, on top of the 1.68% decrease in 2024. The existing Medicare physician payment system is unsustainable, and ASCO is calling on Congress to reform it.

• Physicians are the only providers who do not automatically receive an annual inflationary update from Medicare. Year after year, reimbursement for physicians falls drastically below inflationary rates, resulting in cuts to reimbursement for services.

• Budget neutrality requirements in the Medicare system limit the allocation of funds for essential cancer care services and can restrict the use of the newest and innovative treatments.

• The Merit-Based Incentive Payment System (MIPS) places increased administrative burdens on providers and take time away from critical patient care.

• The lack of incentives and financial stability hinder the broader transition to value-based care models.

The current Medicare reimbursement system makes it difficult for practices to maintain a viable business, and thus, impacts patients’ access to care.

Why it Matters: Physician reimbursement has fallen behind inflationary rates by 33% since 2001. Along with the increased administrative burden placed on providers, the limitations on resources allocated for necessary care, and the lack of incentives to transition to value-based care models, only amplify the unsustainable Medicare physician payment system.

The Ask: Join ASCO in asking Congress to pass the Medicare Patient Access and Practice Stabilization Act, legislation that would effectively offset the 2.8% cut that took effect on January 1, and provide an update through 2025.This bill, introduced by Reps. Greg Murphy, M.D. (R-NC-3), Jimmy Panetta (D-CA-19), John Joyce, M.D. (R-PA-13), Raul Ruiz, M.D. (D-CA-25), Mariannette Miller-Meeks, M.D. (R-IA-1), Kim Schrier, M.D. (D-WA-8), Claudia Tenney (R-NY-24), Ami Bera, M.D. (D-CA-6), Carol Miller (R-WV-1), and Raja Krishnamoorthi (D-IL-8) is an important step in protecting patient access to care while providing Congress with additional time to address long term reforms.

ASCO is also asking Congress to pass the Preserving Patient Access to Accountable Care Act, introduced by Reps. Darin LaHood (R-IL-16), Suzan DelBene (D-WA-1), Neal Dunn, M.D. (R-FL-2), and Kim Schrier, M.D. (D-WA-8), which would extend the Advanced Alternative Payment Model (APM) incentive for one year at 3.53%.

Please ask your lawmakers to support Medicare providers and ensure patient access to necessary care.