The 2025 Medicare Fee Schedule: What You Need to Know
Big news: the 2025 Medicare Physician Fee Schedule has officially been released. While the changes from 2024 may seem modest—a slight reduction of just over 1 percent—the broader context tells a more significant story.
According to the Centers for Medicare & Medicaid Services (CMS), the Medicare Economic Index (MEI), which tracks inflation in medical practice costs, is projected to climb by 3.5 percent in 2025. This follows a record-breaking 4.6 percent increase in 2024—the highest we’ve seen this century—and a 3.8 percent rise in 2023. Meanwhile, the American Medical Association (AMA) reports that when adjusted for inflation, Medicare payments to physicians have plummeted by 29% since 2001. This ongoing disparity puts immense strain on providers like you, who are doing everything possible to deliver high-quality care to patients.
Fighting for a Fix
The good news? There’s strong advocacy happening to address these challenges. National organizations and the Medicare Advocacy Coalition (MAC) are keeping a close eye on Congressional efforts to stop these cuts. Without intervention, the combination of reduced payments and soaring medical costs could force many practices to see fewer Medicare patients—or stop seeing them altogether. This would be devastating, not just for providers, but for the millions of seniors relying on Medicare for their care.
In October, a bipartisan majority of the U.S. House of Representatives signed a letter urging House leadership to include physician payment protection in the year-end spending package. Among the 233 signees, nine members of Congress from Michigan stepped up to advocate for patients and providers. One proposed solution, H.R. 10073, would provide a much-needed 4.73 percent payment increase.
The Bigger Picture
While H.R. 10073 is a step in the right direction, temporary patches aren’t the long-term solution we need. Physicians remain the only group of healthcare providers without automatic inflation adjustments built into the fee schedule. This leaves us stuck in a frustrating cycle of payment cuts and quick fixes, all while facing ever-increasing practice costs.
The time has come for permanent reform. A sustainable Medicare payment system is essential for ensuring that patients can access the care they need and that providers like you are supported in delivering it.
What You Can Do
Advocacy matters, and your voice plays an essential role in shaping the future of Medicare payments. Stay informed, support legislative efforts like H.R. 10073, and engage with your professional organizations to push for meaningful, long-term reform.
At Breakthrough Coaching, we’re here to keep you updated on these critical developments and to help you navigate the complexities of Medicare and practice management. Together, we can face these challenges and continue providing the care our patients depend on.
Let’s keep the conversation going! How are these changes affecting your practice? Share your thoughts in the comments or bring them to your next coaching session.
Mark Sanna, DC, ACRB Level II, FICC
CEO, Breakthrough Coaching
