Senate Letter Calls for Action to Stabilize Medicare Payment System

On November 21, a group of 41 Senators submitted a letter to leadership underscoring the urgent need to address Medicare’s unstable provider payment system. Led by Senators John Boozman (R-AR) and Peter Welch (D-VT), the Senate letter mirrors a recent bipartisan effort in the House of Representatives, where 233 lawmakers called on House leadership to implement meaningful, long-term reform in the wake of the looming 2.8% cut to Medicare provider reimbursement in 2025. The Senate letter also recognizes the risk to patient care these outdated policies cause when combined with increasing costs of retaining employees, purchasing equipment, and providing care.

For physical and occupational therapists, these systemic flaws are especially critical. Through their work in helping patients regain their mobility, manage chronic conditions, and recover from injuries, physical therapists greatly reduce the need for surgeries, medications, and downstream costs on the healthcare system – especially when it comes to our older population. However, the cumulative 29% reduction in Medicare payments over the last two decades (when adjusted for inflation) is threatening the stability of practices and limiting patient access to care, particularly in rural and underserved communities.

“Persistent instability in the health care sector – due, in part, to consistent payment cuts – impacts the ability of physicians and clinicians to provide the highest quality of care. These continued payment cuts undermine the ability of independent clinical practices – especially in rural and underserved areas – to care for their communities. Some practices have limited the number of Medicare patients they see, or the types of services offered,” the Senators wrote.

The Senate letter also underscores the need for long-term stability of the Medicare program and calls for targeted reforms to help improve providers’ ability to care for their patients. APTQI urges lawmakers to prioritize Medicare provider reimbursement reform to ensure fair payment policies and safeguard patient access to care.

“On behalf of patients and healthcare providers, we look forward to working together to address the 2.8 percent payment cut and create stability in the Medicare program for our nation’s seniors,” the letter concluded.

The letter was signed by 41 bipartisan Senators and can be read HERE.