ACR, coalition urges MEI-based inflationary update to MPFS

The American College of Radiology (ACR) and a larger coalition of healthcare provider organizations have called for a permanent Medicare Economic Index (MEI)-based inflationary update to the Medicare Physician Fee Schedule (MPFS), suggesting it will benefit small private practices.

This week, the ACR and 120 organizations sent a letter to the U.S. House of Representatives to rally around the Strengthening Medicare for Patients and Providers Act (HR 2474). The MPFS is the only payment system within Medicare lacking an annual inflationary update, even though clinicians -- many of whom are small business owners -- contend with a wide range of shifting economic factors, a September 10 letter appealing to Congress noted.

In 2025, the proposed 2.8% payment reduction per MPFS will coincide with an expected 3.6% increase in medical practice cost inflation as measured by the MEI, the letter explained. When adjusted for inflation, Medicare physician payments have declined by 29% from 2001 to 2024. 

The advocacy effort also highlighted two bills currently pending in the U.S. House -- the Provider Reimbursement Stability Act (HR 6371) and the Physician Fee Stabilization Act (S 4935) -- that have been introduced to provide statutory changes to the budget neutrality requirement to help ensure payment stability in the MPFS.

"The coalition is united in stressing the need for a Medicare Economic Index-based inflationary update to the MPFS, to at the very least allow payments to keep pace with the true cost of operating a medical practice," the ACR stated.

Read the coalition's letter here.

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