Medicare Physician Payment Reduction Included in End-of-year Spending Bill

Dec. 21, 2022 - On Dec. 20, Congressional leadership announced a $1.7 trillion year-end spending agreement, which included a series of healthcare policies as well as several AAFP priorities—among them are changes to Medicaid coverage, extension of telehealth flexibilities, improvements in behavioral health, enhancements to the physician workforce, and investments in public health.

However, the omnibus spending package mitigates 6.5% of Medicare payment cuts originally slated to take effect in 2023, which means physicians would still face a 2% reduction in the 2023 Medicare conversion factor.

AAFP’s Government Relations and Practice Advancement teams are working to better understand the impact of the omnibus agreement coupled with the 2023 Medicare Physician Fee Schedule final rule and what that will look like for family medicine in the coming year.

In terms of process, after moving through the U.S. Senate this week, the House is expected to consider and pass the bill no later than Friday. President Biden is then expected to sign the bill into law before the Dec. 23 government funding deadline. 

After final passage of the legislation through both chambers, AAFP will communicate more details, and engage on social medica via @aafp_advocacy. In 2023, AAFP will continue to tackle payment reform in the next Congress.