Legislation finalizing fiscal year 2024 funding levels for six federal agencies was signed into law by President Biden on March 9, 2024, following its passage over the preceding days by wide bipartisan margins in both the House and Senate. Importantly for psychologists, the legislation included a 1.7% increase in Medicare payment rates, effective March 9, 2024, mitigating the 3.4% reduction in the Medicare conversion factor that took effect on January 1. The newly adopted increase is not retroactive to the beginning of the year. APA Services strongly supported efforts to get this across the finish line.
The association and other health care provider organizations are pushing for Congress to end the annual cycle of Medicare payment cuts and last-minute patches. On average, Medicare provider payments have increased just 0.4% per year since 2001, substantially less than inflation. Members of Congress have expressed interest in resolving the continuing discrepancy between Medicare payment rates and providers’ expenses. The Strengthening Medicare for Patients and Providers Act (H.R. 2474opens in new window) bipartisan legislation to set the annual conversion factor update equal to the Medicare Economic Index, a measure of clinicians’ practice cost inflation, has been introduced in the House, but further work on this issue is unlikely until after the elections.
Through both our work individually and through strategic alliances and coalitions, APA Services will continue advocating for appropriate valuation and reimbursement of psychologists’ services, and for arresting the steady decline in Medicare payments affecting all specialties.
For more information, contact Scott Barstow.