AMA Advocates Medicare Payment Reform, Supports Visas to Aid Physician Workforce

The American Medical Association (AMA) supports bipartisan legislation aiming to reissue 40,000 unused immigrant visas for physicians and nurses, addressing workforce shortages and improving access to care. Additionally, the AMA has backed the Strengthening Medicare for Patients and Providers Act, which proposes a permanent inflation update for physician payments based on the Medicare Economic Index (MEI) starting in 2026. This legislation aims to correct the disparity where Medicare physician payments have declined by over 33% after inflation adjustments, despite operating costs rising nearly 59% over two decades. The AMA has urged Congress and CMS to phase in over four years indirect practice expense (PE) payment cuts scheduled under the 2026 Medicare Physician Payment Schedule, which average a 7% reduction but could reach as high as 13% for certain facility-based specialties such as ophthalmology. These cuts are concerning for the sustainability of smaller and independent physician practices and may drive further hospital consolidation. The AMA's advocacy is informed by its 2024 Physician Practice Information survey, which demonstrates significant indirect expenses like administrative costs and overhead remain with physician practices, countering CMS's concerns of double payment for these expenses in facility settings. The AMA emphasizes the need for a transition period to avoid disrupting patient care continuity and to support private medical practices. Moreover, the AMA continues to engage in ongoing advocacy efforts including updates on Medicare payment reforms, medical education improvements, and legislative initiatives to stabilize physician practice economics. Their initiatives also cover workforce development with incentives for medical students in rural areas and fostering leadership among residents and fellows. The AMA is maintaining a focus on ensuring equitable, sustainable payment frameworks and regulatory policies that reflect healthcare economic realities and support patient access. Their comprehensive approach combines legislative advocacy, policy analysis, and professional education resources to address challenges within the Medicare system and broader healthcare environment impacting physicians nationwide.