LUGPA Policy Alert: The Continuing Resolution and Medicare Physician Payment Cuts

March 2025 

On Friday, March 14, 2025, Congress passed a Continuing Resolution (CR) to fund the government through the remainder of the fiscal year, ending on September 30, 2025. The legislation was largely supported by Republican lawmakers in both chambers and was signed into law by President Trump, successfully preventing a government shutdown.

Medicare Physician Payment Cut Remains Unaddressed

Despite the passage of the CR, the 2.8% Medicare physician payment cut that took effect on January 1, 2025, remains in place. The CR did not include any provisions to reverse or mitigate this cut, leaving physicians without a clear legislative solution. With no immediate pathway for relief, physician practices continue to face financial strain.

Potential Legislative Action

A stand-alone bill in the Senate includes a provision to address the Medicare physician payment cut. While there has been recent discussion and some movement on this legislation, it is not yet positioned to advance. Further advocacy from healthcare stakeholders will be critical to ensure that this bill gains traction in Congress.

LUGPA’s Advocacy Efforts

LUGPA remains committed to securing both short-term and long-term solutions to Medicare physician payment reform. At our upcoming fly-in, LUGPA will emphasize the urgency of addressing this issue and will work closely with lawmakers to advocate for a sustainable physician reimbursement structure. We encourage our members to remain engaged in this effort to protect the financial viability of independent practices and ensure continued access to quality patient care.

Conclusion

The failure to include a Medicare physician payment fix in the CR highlights the ongoing challenges in achieving fair reimbursement for physician services. LUGPA will continue to advocate vigorously for a resolution and will keep members informed on legislative developments and opportunities for engagement.

For more information, you can visit LUGPA’s webpage on Sustainable Physician Reimbursement.