Alexandria, VA – AMGA today called on Congress to act to reverse a cut in the Medicare conversion factor that would further strain AMGA member medical groups and health systems who are already facing financial headwinds due to inflation, increased supply costs, and an unprecedented shortage in the healthcare workforce. As part of its final physician payment rule for 2023, the Centers for Medicare & Medicaid Services (CMS) decreased the Medicare conversion factor by more than 4%. This reduction, combined with a looming Pay-As-You-Go (PAYGO) cut and the recently reinstituted Medicare sequester, would cut Medicare payments to medical groups and health systems by more than 10% starting in January 2023.
“While disappointed in CMS’ action, we also recognize that this is Congress’ problem to fix. This annual brinksmanship with Medicare payments is not sustainable and does not support better care for patients,” said AMGA President and CEO Jerry Penso, M.D., M.B.A. “These cuts undermine AMGA members ability to best care for their patients and invest in the technology, infrastructure, and staff needed to transition to value-based care.”
CMS also finalized significant changes to the Medicare Shared Savings Program. AMGA largely endorsed these proposals, including a change that will provide Accountable Care Organizations (ACOs) additional time in upside-only risk models. However, CMS also finalized a new, prospectively projected, administrative growth factor for ACO benchmarks for their financial spending targets. AMGA is concerned that CMS is moving forward with yet another significant change to the ACO program before working with the stakeholder community to develop a new benchmark strategy.
AMGA is a trade association leading the transformation of health care in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans. For more information, visit amga.org