Where We Stand
Section: Medicare
Policy: Rational Medicare Payment System
Appendix Q

Rational Medicare Payment System

In June 2022, the American Medical Association developed a set of principles in collaboration with Federation organizations including the Oregon Medical Association. The set of principles¹ provides a framework for payment reform as an early step in the AMA's effort to develop consensus across medicine on policy recommendations that would reshape the payment system to work better for patients and physicians and their medical teams and put an end to the annual advocacy exercise of stopping impending payment cuts.^2,3

According to the AMA, when adjusted for inflation in practice costs, Medicare physician payment fell 20% from 2001 to 2021, and without an inflation-based update, the gap between frozen physician payment rates and rising inflation in medical practice costs will widen. This issue with the Medicare payment system will in turn lead to problems with patient access.

The OMA will continue to work with AMA as it further develops concrete proposals to meet the goals set forth in the principles.

References

1 AMA Principles Characteristics of a Rational Medicare Payment System with signatories

2AMA: Medicare payment schedule rule threatens patient access Press Release

3AMA History of the Medicare Conversion Factors