Congress Must Stabilize Medicare Reimbursement and Protect Patient Access to Care
For years, Medicare reimbursement for physical therapists has continued to decline while the cost of delivering care has continued to increase. Clinics across the country are grappling with higher labor costs, increased administrative burden, inflation, and growing demand for rehabilitation services. Yet, under the current Medicare Physician Fee Schedule (MPFS), reimbursement for physician and physical therapy services remains vulnerable to automatic cuts and year-to-year instability.
Thankfully, the Provider Reimbursement Stability Act (H.R. 8163) would make two important technical reforms to the Medicare Physician Fee Schedule. Recently introduced by a bipartisan group of lawmakers, the legislation would make technical changes that would have a real impact on physical and occupational therapy practices.
First, it would increase the budget neutrality threshold for the first time since 1992. Second, it would limit annual swings in the conversion factor to 2.5%, helping create a more predictable reimbursement environment for providers. These policy updates would help stabilize the Medicare Physician Fee Schedule and significantly improve the ability of physical and occupational therapy providers to care for their communities.
The Provider Reimbursement Stability Act was introduced by Representatives Greg Murphy, MD (NC-03), Brad Schneider (IL-10), John Joyce, MD (PA-13), Tom Suozzi (NY-03), Bob Onder, MD (MO-03), Jimmy Panetta (CA-19), Mariannette Miller-Meeks, MD (IA-01), Kim Schrier, MD (WA-08), and Robin Kelly (IL-02). Though this bill will not solve every challenge facing rehabilitation providers, it is a meaningful step toward protecting Americans’ access to care and bringing greater predictability to the Medicare payment system.
A more stable reimbursement system would mean more stable access to care for aging Americans – and patients across the country are counting on it.