Groups Caution Congress Against Including Medicare Cuts in Budget Bill - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
February 6, 2018 Newswires
Share
Share
Post
Email

Groups Caution Congress Against Including Medicare Cuts in Budget Bill

Targeted News Service (Press Releases)

CHICAGO, Illinois, Feb. 5 -- The American Medical Association issued the following news release:

The American Medical Association, the American Academy of Family Physicians, the American College of Physicians and the American College of Surgeons sent the following letter to House and Senate leaders concerning Medicare cuts that are expected to be included in the FY 18 spending bill that Congress is voting on this week.

The full text of the letter is below and can be downloaded in pdf format here.https://searchlf.ama-assn.org/undefined/documentDownload?uri=%2Funstructured%2Fbinary%2Fletter%2FLETTERS%2FPhysician-MVC-Letter-final-02-05-18.pdf

Dear Majority Leader McConnell, Leader Schumer, Speaker Ryan, and Leader Pelosi:

On behalf of the undersigned physician organizations, we are writing to express our strong opposition to further Medicare cuts by the extension of misvalued code adjustments beyond 2018.

This misguided policy has already eliminated much of the minimal statutory updates Congress enacted as part of the Medicare Access and CHIP Reauthorization Act (MACRA) in 2015. Further application of these polices will result in Medicare physician payment rates at or below pre-MACRA levels.

In 2014, Congress passed the "Protecting Access to Medicare Act" (PAMA) despite strong opposition from the physician community. As part of that bill, the Secretary of the Department of Health and Human Services was required to work with the physician community to identify services that were deemed to be misvalued, with any identified excess valuation being redistributed over the fee schedule and any amount not identified below a target to be cut from the fee schedule.

By not recognizing the efforts of the physician community to reallocate relative values that already had been underway for eight years by the time PAMA was adopted, the targets were unrealistic, essentially guaranteeing billions in Medicare cuts that were used to offset other policies.

Congress compounded the challenge in subsequent legislation that moved the start date up by a year, shortened the time period over which possible reallocations were to be identified, and doubled the target for the first year in order to pay for other non-Medicare related legislation.

It is our understanding that you are now considering extension of these policies for an additional two years. When Congress enacted MACRA, updates of 0.5 percent were adopted for each year through 2019 followed by five years of 0 percent updates. To date, the application of the misvalued code policy has resulted in a total payment increase of 0.7 percent from 2015-2018, less than half of what was called for under MACRA.

Because the work to revalue codes has been going on for over a decade, there are simply not enough services with sufficient volume left to review and revalue to meet these targets. In fact, due to the regulatory timeline the work to revalue codes for the 2019 fee schedule is already completed, guaranteeing that extension of this policy would virtually wipe out the entire 2019 update. A two-year extension of this policy will generate additional cuts in 2020 when MACRA provides for an update of 0 percent--meaning actual payment rates for all physicians will go down for the second time since this flawed policy was adopted.

Extension of the misvalued codes policy for two years would cause Medicare payment rates to drop to levels below the 2015 rate prior to repeal of the sustainable growth rate (SGR) formula, completely erasing the investment Congress made to help physician practices implement MACRA.

We strongly urge you to not destabilize the Medicare program and ongoing efforts to transform it by extending this flawed policy.

Sincerely,

American Academy of Family Physicians

American College of Physicians

American College of Surgeons

American Medical Association

Older

Yellen: Snub For Second Term As Fed Chair Is Disappointing

Newer

CEI Praises House Plan to Fix Obamacare Menu Labeling Mandate

Advisor News

  • Health-related costs are the greatest threat to retirement security
  • Social Security literacy is crucial for advisors
  • The $25T market opportunity in mid-market and mass-affluent households
  • Advisors must lead the policy risk conversation
  • Gen X more anxious than baby boomers about retirement
More Advisor News

Annuity News

  • CT commissioner: 70% of policyholders covered in PHL liquidation plan
  • ‘I get confused:’ Regulators ponder increasing illustration complexities
  • Three ways the Corebridge/Equitable merger could shake up the annuity market
  • Corebridge, Equitable merge to create potential new annuity sales king
  • LIMRA: Final retail annuity sales total $464.1 billion in 2025
More Annuity News

Health/Employee Benefits News

  • PALLONE SOUNDS ALARM AS TRUMP ADMINISTRATION LAUNCHES FURTHER ATTACKS ON ABORTION COVERAGE IN NEW JERSEY
  • With Minneapolis medical center's survival threatened, staff and leaders call for state action
  • Harriet Tubman quote vote; Health insurance drop; PHL checkpoints open | Morning Roundup
  • Losing Health Coverage Due to Trump Cuts? Your Guide on 'Essential Plan' Changes
  • Aflac overcharging Virginians, SCC finds
More Health/Employee Benefits News

Life Insurance News

  • Life insurers post modest gains following record 2024, S&P Global finds
  • Aflac overcharging Virginians, SCC finds
  • Virginia orders rate cuts for Aflac policies
  • QANDA WITH OBI BOARD CHAIR JUSTIN DELANEY
  • Aflac to cut rates for Virginia policyholders after SCC findings
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Protectors Vegas Arrives Nov 9th - 11th
1,000+ attendees. 150+ speakers. Join the largest event in life & annuities this November.

An FIA Cap That Stays Locked
CapLock™ from Oceanview locks the cap at issue for 5 or 7 years. No resets. Just clarity.

Aim higher with Ascend annuities
Fixed, fixed-indexed, registered index-linked and advisory annuities to help you go above and beyond

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Leveraging Underwriting Innovations
See how Pacific Life’s approach to life insurance underwriting can give you a competitive edge.

Press Releases

  • RFP #T01525
  • RFP #T01725
  • Insurate expands workers’ comp into: CA, FL, LA, NC, NJ, PA, VA
  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet