Last week, Congress took action to reduce the impending Medicare payment cuts in a bipartisan fashion and advanced the legislation to the President for signature before adjourning for the year. ASA has been working in coalition with the medical community to mitigate impending Medicare payment cuts of 9.75% scheduled to go into effect on January 1, 2022. As a result of lobbying and grassroots efforts, the physician and hospital communities were able to secure relief that reduced a scheduled 9.75% cut to a 2.75% payment cut. The following chart shows the approach Congress is taking on Medicare payments in 2022.
Cuts |
Prior to Congressional Action |
Phase 1 Cuts |
Phase 2 Cuts |
Phase 3 Cuts |
Medicare Physician Conversion Factor (CF) |
- 3.75% |
- 0.75% |
- 0.75% |
- 0.75% |
Medicare Sequestration |
-2% |
0% |
-1% |
-2% |
PAYGO Sequestration |
-4% |
0% |
0% |
0% |
TOTAL Across the Board Cuts |
-9.75% |
- 0.75% |
- 1.75% |
- 2.75% |
In the end, physicians are still looking at a payment cut of 2.75%. ASA strongly opposes any Medicare payment cuts, especially as providers continue to grapple with the challenges imposed by the COVID-19 pandemic. ASA has long argued that the Medicare payment formula, specifically for anesthesia services, is significantly flawed and that the Medicare payment system is broken.
ASA thanks the thousands of members who engaged in grassroots calls to action to Congress. ASA will continue to advocate for comprehensive Medicare payment reform and will continue to take action to avoid any future payment cuts.