Proposed cuts to Medicare’s physician reimbursement rates could make Idaho’s doctor shortage worse

The future of health care in Idaho is at a crossroads. Just as the Baby Boomer generation is requiring increasing amounts of quality care, the system that provides much of that care is beginning to fail. 

Today, hundreds of thousands of Idahoans rely on Medicare coverage. However, the nature of the Medicare system, and how it reimburses the physicians who care for our senior citizens, has rendered the economics of running a medical practice increasingly difficult. 

Simply put, the physicians who provide care to Idahoans across the state are under increasing financial pressure, due in large part to the skyrocketing costs of running a medical practice, which has grown nearly 40% since 2001. Unfortunately, Medicare physician payments have been reduced by 26% (adjusting for inflation) over that same span of time. This makes a difficult situation even worse, and the Centers for Medicare & Medicaid Services have proposed a further 3.37% cut to physician payments next year. 

Congress already recognizes this is a problem. In fact, last year it addressed the issue with other providers, such as nurses and hospitals. But physicians were left out, despite their vital importance to the health and wellness of our senior population. This failure only adds to the strain providers face caused by burnout, stress, and the cumulative impact of COVID-19. It is no surprise that one in five physicians report they have contemplated leaving their practices within two years. 

Rural communities and states like Idaho are already having trouble recruiting and retaining physician providers. If this cut goes forward, it will only further squeeze our most important health care providers, and push many of them out of the market, making access to quality health care for a large number of Idahoans an even greater challenge. Congress can take steps right now to help prevent such closures as well as strengthen access to physician care among patients with Medicare. 

The Preserving Seniors’ Access to Physicians Act of 2023 prevents the scheduled cuts facing physicians. It solves the problems facing physicians and their patients by applying a permanent inflation-based update to how physicians are repaid, ensuring fairness and access to care while making sure we do not need to address this problem every time we face a new round of inflationary pressure.

We must stand up and rise to the challenge, on behalf of all Idahoans, especially those who need it the most.