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A newly proposed government funding bill from House Republicans is raising concerns about its potential effects on Medicare and Medicaid - programs that serve tens of millions of Americans.
As lawmakers race to avoid a government shutdown before Friday's deadline, critical questions remain about how this bill could reshape the future of federal health programs.
Though the proposed continuing resolution (CR) aims to maintain current spending levels through September 30, healthcare experts and physician groups warn that unresolved issues, particularly Medicare physician payment cuts, could have long-term consequences for seniors' access to care.
House Speaker Mike Johnson's stopgap bill would maintain Social Security, Medicare, and Medicaid benefits for now, while also postponing cuts to the Medicaid Disproportionate Share Hospital (DSH) program until 2028 - a move that helps hospitals serving low-income communities.
Additionally, Medicare's telehealth provisions would be extended through fiscal year 2025. However, despite these protections, physicians are sounding the alarm over the bill's failure to address a damaging 2.8% cut to Medicare payments that took effect on January 1.
Physicians Warn of Lasting Damage from Medicare Cuts
Healthcare leaders, including American Medical Association (AMA) President Bruce A. Scott, MD, have condemned the bill for locking in these cuts, arguing that it puts patient care and medical practices at risk.
"Physicians across the country are outraged that Congress's proposed spending package locks in a devastating fifth consecutive year of Medicare cuts, threatening access to care for 66 million Medicare patients," said Dr. Scott.
"Despite repeated warnings, lawmakers are once again ignoring the dire consequences of these cuts and their impact both on patients and the private practices struggling to keep their doors open."
Dr. Scott emphasized that the cuts could be especially harmful to rural and underserved communities, where physicians already face higher practice costs. "These unsustainable cuts will force more practices to close and leave patients with fewer options for care. ... Medicare patients will pay the price," he warned.
According to AMA data, Medicare physician payments have fallen 33% since 2001 when adjusted for inflation in practice costs, making this one of the most pressing issues for medical professionals. Dr. Scott added that two of his own partners have left private practice because of these financial pressures.
Meanwhile, Medicare Payment Advisory Commission (MedPAC) is preparing to recommend that physician payments be tied to inflation, something the AMA has long advocated. Dr. Scott noted, "It just makes sense that payment must keep pace with increasing costs."
Political Reactions and What Happens Next
Lawmakers on both sides are weighing in on the bill's broader implications. Rep. Tom Cole, a Republican from Oklahoma and chair of the House Appropriations Committee, defended the proposal, stating, "This straightforward continuing resolution ensures the government remains open and working for Americans."
President Donald Trump has also urged Republicans to the bill, writing on Truth Social, "Great things are coming for America, and I am asking you all to give us a few months to get us through to September."
However, some Democrats have raised concerns, particularly over increases in defense spending included in the bill. House Minority Leader Hakeem Jeffries noted that Democrats are ready to negotiate a "meaningful, bipartisan spending agreement that puts working people first."
As Congress faces its March 14 deadline to prevent a shutdown, healthcare advocates continue to pressure lawmakers to address the physician payment cuts. The AMA and other groups are calling on Congress to reverse the reductions and protect patient access to care.
"The window to reverse this reckless decision is rapidly closing," Dr. Scott warned. "Lawmakers must explain either why protecting access to quality health care is not a priority or how they plan to fix it."
If Congress does not act soon, both patients and physicians may face lasting damage from the unresolved Medicare cuts, despite the short-term relief offered to other programs under the proposed bill.