Social Security & Medicare · Report · File No. 261113-547
62 doctor groups urge lame-duck Congress to stop Medicare's 2.31% pay cut by Jan. 1
A coalition led by the American Medical Association asked Republican and Democratic leaders to undo a Medicare cut to doctors' pay before it starts on New Year's Day. Republicans still run both chambers until January, so the decision belongs to them.
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A coalition of 62 health care organizations, led by the American Medical Association (AMA), sent a letter Thursday asking congressional leaders to add four Medicare changes to a year-end bill 1. The group's main goal is to head off a cut to what Medicare pays most doctors, which takes effect Jan. 1, 2027 15.
The letter, dated Nov. 12, went to House Speaker Mike Johnson, Senate Majority Leader John Thune, House Democratic Leader Hakeem Jeffries and Senate Democratic Leader Charles E. Schumer 2. Other signers include the American Academy of Family Physicians, the American College of Cardiology and the American Psychiatric Association 1.
These four reforms are practical, bipartisan steps Congress can take now to strengthen Medicare and protect patients.
What the cut is and where it came from
On Nov. 4, the Centers for Medicare & Medicaid Services (CMS), the federal agency that runs Medicare, released its final 2027 physician fee schedule. That is the price list Medicare uses to pay doctors 5. For most doctors, the base rate falls from $33.40 to $32.63 per unit of service, a 2.31% cut. That is deeper than the 1.68% cut CMS proposed in July 5.
Most of that drop has a simple cause. Congress gave doctors a one-year 2.5% raise for 2026 in Public Law 119-21, the 2025 law CMS calls the Working Families Tax Cut legislation 5. When that one-year raise ends, most of it disappears from doctors' pay, and small automatic updates of 0.25% for most doctors make up only part of the loss 5.
From Channel GOPMike Johnson says polls were wildly inaccurateMike Johnson · 575 plays · captioned, with the source named
The rule also pays 20% less for the cheaper service when a patient gets an office visit and a minor procedure on the same day 5. CMS backed off a 50% cut it proposed in July 9. But under Medicare's budget rules, that easing turned into a bigger cut to the base rate, according to the Medical Group Management Association (MGMA), which represents medical practices 6.
Trump's Medicare chief defended the rule. CMS Administrator Mehmet Oz said: "This final rule breaks from that status quo" 5.
Our nation is in a primary care crisis, and if we don't act swiftly to reform the system
What the doctors are asking for
The coalition wants Congress to extend the 2.5% raise through 2027 1. It also wants lawmakers to pass the Provider Reimbursement Stability Act (H.R. 8163/S. 5180). That bill would make CMS correct its payment math when its guesses about how much care patients will use turn out to be wrong 12. The AMA says the House Ways and Means Committee approved the bill 44-0 3.
The other two requests: delay the same-day visit cut for one year, and cap penalties under Medicare's doctor quality-scoring program, the Merit-based Incentive Payment System (MIPS), at 2% 1. The AMA says those penalties can now reach 9% 3.
The letter says Medicare's pay for doctors "has fallen approximately 33 percent since 2001 when adjusted for inflation in practice costs" 2. It also argues that "Physicians and patients should not face permanent cuts to offset spending that never occurred" 2.
The clock and who controls it
Congress came back for its post-election "lame-duck" session on Nov. 9. The stopgap law that funds the government runs out Dec. 11 3. Doctor groups see a year-end spending package as the most likely way to pass a fix 6.
Republicans keep their majorities until January. Lawmakers in both parties have backed stopping the Jan. 1 doctor pay cut, KFF Health News reported, but experts expect little to get done 8. "Everyone gets hyped up for lame ducks, and they're always a disappointment," said Doug Holtz-Eakin of the American Action Forum, a conservative policy group 8.
That matters because the cut starts Jan. 1, before the new Democratic majorities are sworn in. Any fix in the next few weeks has to get through floors that Johnson and Thune control.
A longer-term bill, the Patients First Act (H.R. 9693), had 69 cosponsors as of early November, according to the AMA 3. It would tie doctors' Medicare pay to inflation every year 3. The bill's lead sponsors are doctors from both parties: Reps. Kim Schrier (D-Wash.), John Joyce (R-Pa.) and Greg Murphy (R-N.C.) 37. "Our current Medicare physician payment system is unsustainable," Murphy said when the bill was introduced in July 7.
Will patients notice
Family doctors warn that the squeeze will hurt. "Any cut to primary care payments puts practices at risk, worsens physician shortages," said Kisha Davis, president of the American Academy of Family Physicians 4. Tricare, which covers military families, state Medicaid programs and many private insurers also base their payments on Medicare's fee schedule 4.
virtually all non-pediatric physicians participate, so this change in payment isn't likely to have a major impact
Max Richtman, who heads the National Committee to Preserve Social Security and Medicare, said advocates "want to see a high percentage of providers continue to participate in traditional Medicare" 4. Here is the pattern: Congress has kept patching doctors' pay one year at a time, so the same cliff comes back every winter.
For too long, fee-for-service payment has rewarded volume over value, fueling a reactive system of sick care
The Record
- Reps. Schrier, Joyce and Murphy introduce the bipartisan Patients First Act to tie doctors' Medicare pay to inflation 7.
- CMS releases its final 2027 fee schedule, cutting the base rate for most doctors 2.31%, deeper than the 1.68% it proposed 5.
- Congress opens its lame-duck session. Government funding expires Dec. 11 3.
- An AMA-led coalition of 62 organizations asks Johnson, Thune, Jeffries and Schumer to stop the cut in a year-end package 12.
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Sources
- MedCity News, “62 Organizations Call on Congress to Advance 4 Medicare Reforms” (2026-11-12). medcitynews.com/2026/11/62-organizations-call-on-congress-to
- American Association of Neurological Surgeons, “AMA Federation Letter Urging Medicare Physician Payment Reforms in Year-End 2026 Legislation” (2026-11-12). aans.org/advocacy/articles/ama-federation-letter-urging-medi
- American Medical Association, “Lame-duck session offers chance to protect Medicare patients' access” (2026-11-05). ama-assn.org/health-care-advocacy/access-care/lame-duck-sess
- Yahoo Finance, “The doctor won't see you now. How Medicare cuts could hit retirees” (2026-11-11). finance.yahoo.com/healthcare/article/how-cuts-to-what-medica
- Medical Economics, “Medicare's final 2027 fee schedule cuts physician pay more than proposed but softens the same-day visit penalty” (2026-11-05). medicaleconomics.com/view/medicare-s-final-2027-fee-schedule
- Medical Economics, “Can Congress stop the 2027 pay cut? with Anders Gilberg of MGMA” (2026-11-12). medicaleconomics.com/view/can-congress-stop-the-2027-pay-cut
- Office of Rep. Kim Schrier, “Drs. Schrier, Joyce, and Murphy Introduce Bipartisan Patients First Act” (2026-07-15). schrier.house.gov/media/press-releases/drs-schrier-joyce-and
- CBS News / KFF Health News, “Democrats' election rout is poised to dramatically reorder federal health policy” (2026-11-04). cbsnews.com/news/democrats-2026-midterm-election-health-poli
- American College of Cardiology, “CMS Releases Final 2027 Medicare Physician Fee Schedule and Hospital OPPS Rules” (2026-11-05). acc.org/Latest-in-Cardiology/Articles/2026/11/05/14/15/CMS-R
- BabyBoomer.org, “Boomer Headlines Nov. 12, 2026” (2026-11-12). babyboomer.org/news/boomer-headlines-2026-11-12/
Found an error? Tell the newsroom. Corrections are noted at the top of the story.
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