CMS’ proposed 2.8% physician pay decrease for CY2025 earns quick condemnation from docs
The Biden administration is proposing a 2.8% decrease to physician payments in its newly released pay proposal for physicians, drawing near-immediate protest from the industry.
Unveiled Wednesday afternoon, the calendar year 2025 Medicare Physician Fee Schedule proposed rule outlines new policies focused on primary care, preserved telehealth flexibilities and a strengthened Medicare Shared Savings Program (MSSP).
However, the release is headlined by a proposal to decrease average base payment rates by 2.93% from calendar year 2024.
That number incorporates statutory requirements that adjustments be “budget neutral,” the expiration of a 2.93% bump included in calendar year 2024 and an adjustment related to the work relative value unit (RVU) portion of certain services, the administration explained in a news release.
Together, this places the proposed rule’s conversion factor—or the number of dollars Medicare pays per RVU—at $32.36—2.8% lower than calendar year 2024’s $33.29.
In statements quickly released after the proposed rule dropped, frustrated physician and industry groups contrasted the “dangerous” baseline reimbursement cut against financial pressures weighing on practices…
