As the health care industry awaits the release of the 2025 Medicare Physician Fee Schedule final rule, the U.S. House of Representatives has made a proactive strike by introducing the Medicare Patient Access and Practice Stabilization Act of 2024. Strongly supported by APTA, the bill would increase the fee schedule's conversion factor by 4.73%, essentially wiping out the expected 2.8% cut to the conversion factor and providing a 1.9% inflationary payment increase for 2025 (approximately 50% of the 2025 Medicare Economic Index, which is a measure of practice cost inflation).

Without congressional action, the 2.8% conversion factor cut proposed earlier this year by the Centers for Medicare & Medicaid Services is expected to remain in the final rule, impacting dozens of providers paid under the Medicare fee schedule, including physical therapists. The conversion factor is a scaling factor that converts the relative value units for each service into a dollar payment amount for the various CPT codes paid under the fee schedule. It applies to all Medicare Part B providers.

The bipartisan legislation is sponsored by Rep. Greg Murphy, R-N.C.; along with Reps. Jimmy Panetta, D-Calif.; Mariannette Miller-Meeks, R-Iowa; Ami Bera, D-Calif.; Larry Bucshon, R-Ind.; Raul Ruiz, D-Calif.; John Joyce, R-Pa.; and Kim Schrier, D-Wash. Along with APTA, a wide coalition of provider groups has endorsed the legislation, including the American Medical Association, the American Academy of Family Physicians, and the American College of Surgeons.

"Improving payment under Medicare is a top priority for APTA," said Justin Elliott, vice president of government affairs. "This legislation not only would prevent the planned 2.8% cut but would also provide a modest inflationary payment increase for 2025. APTA is grateful to the bipartisan sponsors of the legislation, and we will continue to work with Congress and other stakeholders to enact broader and more permanent reforms to the Medicare fee schedule."

APTA and the provider group coalition are targeting this legislation to be included in the year-end spending deal that Congress must pass by Dec. 20 or face yet another government shutdown.

With the release of the fee schedule final rule imminent, APTA is watching the situation and will provide updates as soon as information is available.

The legislation is the latest in a series of APTA-supported bills that are aimed at reforming the Medicare Physician Fee Schedule, with the goal of increasing payment for PTs and PTAs. Learn more about APTA’s Medicare payment advocacy efforts on Capitol Hill.