APA Services is joining a broad coalition of health care provider organizations in advocating for the passage of the Strengthening Medicare for Patients and Providers. This bipartisan legislation—introduced by Representatives Raul Ruiz (D-California), Larry Bucshon (R-Indiana), Ami Bera (D-California), and Mariannette Miller-Meeks (R-Iowa)—would tie the annual update to provider payment rates to the Medicare Economic Index, a measure reflecting changes in both provider expenses and broader economic trends.

Reimbursement rates for psychologists and other health care providers participating in Medicare are set under the Physician Fee Schedule (PFS), managed by the Centers for Medicare and Medicaid Services (CMS). While CMS adjusts payment rates for specific services each year, the total annual increase in payment rates is set by Congress and affects all health providers equally. 

Medicare’s payment rates are hugely influential, and typically serve as the yardstick for private-sector health plan payment rates and for Medicaid payment rates. We urge psychologists to ask their representatives to cosponsor this bipartisan legislation, and to ask their senators to support similar legislation by taking action using this action alert. Additionally, APA Services will continue to work with members to elevate the voice of psychology in the upcoming PFS proposed rule comment period. Stay tuned for more information on how psychologists can submit comments to inform CMS’s rule making and protect patient access to services in Medicare.

Adjusted for inflation, Medicare payments to health care providers under the PFS are estimated to be 26% lower today than they were in 2001. In 2015, Congress passed legislation which froze annual Medicare payment increases at 0% for the next few years, until 2025, with increases for 2026 and beyond set at only 0.25%. Congress must change this, because if providers are not adequately compensated for their work, many risk being unable to continue taking Medicare patients, making it harder for older patients to receive the care they need.